Bitcoin (BTC) broke through $38,000 support on June 18 but a reversal at solid support already has traders seeking fresh upside.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin buy wall sees big test
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $37,200 on Bitstamp before rebounding.
As Cointelegraph reported, Thursday saw a significant wall of support appear on major exchange Binance, around half of which still remains with $36,500 as a "line in the sand."
"BTC is in the process of retesting the wedge it broke out from a few days ago," popular trader Rekt Capital explained in his latest update.
BTC/USD buy and sell levels on Binance as of June 18. Source: Material Indicators/ Twitter
While there remains the chance of a deeper dip, continued ranging at levels closer to $40,000 is giving commentators cause for optimism. Sources including Crypto Cobra are now eyeing a more significant crypto market rebound in the coming weeks or even days.
This week's Federal Reserve meeting did little to buoy the mood, even as officials forecast higher inflation and held off on tapering unprecedented coronavirus-related interventions in the markets.
Bitcoin barely reacted, fellow trader Scott Melker noted, while gold sold off to dip to six-week lows. Only the U.S. dollar benefitted, despite the outlook ostensibly not in its favor.
"I love that the dollar is going up as the FED commits to more money printing and QE for the rest of the year, at least," Melker added.
"We live in the upside down."
NVT hints at "oversold" Bitcoin
Meanwhile, the latest incarnation of a classic indicator places Bitcoin firmly in "oversold" territory at current prices.
According to Willy Woo, creator of on-chain analytics resource Woobull, the network value to transaction (NVT) signal is now at a low which has historically been a bounce point.
Related: Willy Woo doesn't think Bitcoin's overall upward run has ended
NVT signal is based on the NVT ratio, a method for valuing Bitcoin using network valuation and value transacted, with a moving average used for the result. Woo describes NVT signal as a "more responsive" version suitable for use by traders.
"I've updated NVT Signal to correct for upward drift in the metric (due to volumes moving off the blockchain and only L2)," he told Twitter followers on Thursday.
"And yes, BTC is OVERSOLD at historic levels."
Bitcoin NVT signal chart. Source: Woobull
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.