Bitcoin (BTC) price appears to be bouncing back, swiftly erasing its month-to-date losses and showing an 8% increase as of June 7. This comes as volatility returns to the market, giving bulls a chance to flex their muscles. On Bitstamp, the BTC/USD rate hit $27,388, nearly reaching June’s highest point.
As the market rebounds from its initial uneasiness resulting from legal action against Binance and Coinbase, Bitcoin shows a substantial recovery. Not only has the cryptocurrency returned to its previous trading range just below $27,000 but also managed to hold its ground after a 200-week moving average test.
This recent scenario has left many positively anticipating a new uptrend for Bitcoin. Michaël van de Poppe, founder and CEO of trading firm Eight, projects a potential surge to $38-42K.
However, despite the encouraging price climb, there are some concerns regarding increasing long positions in the market, which might be hindering further growth. Market analysts argue that an adjustment is needed before confidence returns to the market.
Of course, other monitoring resources remain cautious and attentive to the breaking of key resistance points, such as the $27,400 mark identified on the Binance order book. At the time of writing, however, Bitcoin has not managed to successfully break through the barrier.
Meanwhile, former BitMEX CEO, Arthur Hayes, remains confident in the potential for the Bitcoin bull market. Though he acknowledges the current situation as a “struggle,” he believes that a significant change is not too far off.
Considering the potential pros and cons of the current market climate, it is essential for investors to keep a close eye on the unfolding events and adjust their strategies accordingly. As with all investments, understanding the inherent risks and conducting proper research is vital to making informed decisions. So, while the market might showcase promising signs of recovery, skepticism and caution remain essential components in the crypto space.
Source: Cointelegraph
