Bitcoin (BTC) quickly erased its monthly losses through June 7 as volatility returned, ultimately benefiting bulls.
BTC/USD 1 hour candlestick chart on Bitstamp. Source: TradingView
BTC price wipes out Binance and Coinbase decline
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD touching $27,388 on Bitstamp — nearly a fresh June high.
The pair continued its rally that started the day before, with markets shedding initial nervousness over US legal action over Binance and Coinbase.
In doing so, Bitcoin was able to regain all of the lost ground and returned to its previous trading range, which was centered at just under $27,000.
“Back to $27,000. Great bounce from the 200 week ma. It’s time to start the new Bitcoin uptrend to $38,000-$42,000,” replied Michaël van de Poppe, Founder and CEO of trading company Eight.
Van de Poppe pointed to the 200-week moving average, a key support level that was lost for just a few hours at $26,400.
A previous Twitter post called the BTC price correction “over,” reflecting a similar sentiment from popular traders.
“Bitcoin retested the 200-week moving average as support,” confirmed trader and analyst Rekt Capital.
“Downmoves below the moving average have taken place but $BTC managed to hold above it.”BTC/USD commented chart. Source: Rekt Capital/Twitter
Rekt Capital previously warned that a significant drop from the 200-week moving average would result in a trip towards $20,000.
Analyzing the upleg itself, trading suite Decentrader saw cause for relief due to stock traders’ behavior.
Analysts commented on the subsequent return below $27,000, arguing that the increase in long positions slowed the market.
“Usually we see a slight decline until the issue is resolved,” they added.
Monitoring resource Material Indicators, meanwhile, tracked liquidity movements in Binance’s order book and described the events as a “staircase to heaven” as conditions improved.
Nonetheless, the $27,400 level has been identified as a key area for a breakout, which had not happened at the time of writing.
Hayes: Bitcoin has broken the “Wall of Worries”.
Arthur Hayes, former CEO of derivatives exchange BitMEX, was equally adamant that BTC price action will improve.
Related: Bitcoin traders bet on $24,000 BTC price as market digests SEC vs. Binance
In the ongoing reaction on social media, Hayes called on hodlers to wait for the full return of the Bitcoin bull market.
“The wall of worry is breaking down, join me on the $BTC bull market bus,” he wrote of the rally.
“We’re still on the battle road, but the moon isn’t far.”
The day before, Hayes had warned of “FUD” related to Binance, arguing that risky assets were reacting to larger macroeconomic issues that would in turn be resolved.
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