Bitcoin rallied a bit Thursday and the past few days, putting in what appears to be a double-bottom and bouncing back to about the $38K level before cooling off a bit today. This very well could be a choppy sideways trading pattern as BTC looks to break back above the 200 Day EMA, which is a battlefield.
(June 10, 2021 8:30PM EST)
Short-Term:
Fundmentally, nothing has changed so we remain bullish and have been buying on dips. In fact, crypto is more bullish than ever on the back of the El Salvador news - which begs the question: who's next? We continue to buy on dips, as Bitcoin is still down about 50% from its current ATH around $65K. Every indicator suggests this was not a market cycle top, and despite the rampant FUD and vicious selloff, these are all technically accounted for. This time isn't "different" nor is crypto "dead." A break of the 50 Day EMA is never bullish, but the 200 Day EMA appears to be providing some support on the longer-term chart here (resistance in the short-term). A break above the 200 Day EMA should inspire added confidence in bulls as crypto continues to see adoption and fiat continues to be inflated to infinity. Buy. HODL. Earn interest/stake.
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Bitcoin Dominance
BTC.D appears to be putting in a rounded bottoming pattern. The selling has halted and the buyers have stepped in, breaking down the short-term downtrend. Alts have taken an absolute beating during this crypto selloff so it is no surprise to see capital rotate back into BTC, as it historically has many times. If BTC breaks above the 200 Day EMA around 46% Dominance, then we could see a rally on the daily chart to 50% dominance. Ultimately, what we're looking for is a bullish divergence to form a new uptrend, which could take us to 60% (or higher) later this summer.
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Support: $30K, then $20K.
Resistance: $40K.
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Posted Using LeoFinance Beta