The bears are attempting to sink Bitcoin (BTC) below $19,000 to further cement their advantage over the crypto market. Analysts watching Bitcoin’s MVRV-Z Score, a metric which measures how high or low Bitcoin’s price is relative to “fair value,” expect an even deeper fall before the bottom is finally reached.
However, economist, trader and entrepreneur Alex Krueger pointed out that Bitcoin’s volume hit an all-time high in June. Usually, the highest volume in a downtrend is indicative of capitulation and that “creates major bottoms.” If Bitcoin follows the historical pattern of the 2018 bear market, Krueger expects the bottom to form in July.
Due to the tight correlation between Bitcoin and the S&P 500, crypto traders will have to keep a close eye on the performance of the United States equities markets next week, which may be influenced by the release of minutes from the U.S. Federal Reserve’s last meeting and the June jobs report.
Could Bitcoin form a higher low and lead the crypto markets toward the path of recovery? Let’s study the charts of the top-5 cryptocurrencies that indicate the possibility of a relief rally in the short term.
The long wick on Bitcoin’s July 1 candlestick shows that bears continue to sell on rallies near the 20-day exponential moving average ($21,396). Although bears pulled the price below $19,637, they have not been able to build upon the momentum.
The bulls are attempting to push the price back above $19,637. If they succeed, the BTC/USDT pair could again rise toward the 20-day EMA. A break and close above $22,000 could indicate a potential trend change. The pair could then attempt a rally to the 50-day simple moving average ($25,938).
On the contrary, if the price turns down from the currentRead more on cointelegraph.com