Bitcoin traded above $30k irrespective of the dollar strengthening against other fiat currencies. Bitcoin traded at a 1-year high after breaking out of a consolidation that looks like a bullish flag pattern. As such, the cryptocurrency has made a new higher high, keeping the bullish bias intact despite consolidating since April. Bitcoin trades above $30K. Bitcoin and Ether’s recovery has improved traders’ sentiment, which could trigger buying in ARB, VET, and STX.
Crypto Bull Run
Bitcoin BTC $30,279 made a new 52 week high on June 23. Buyers are in no hurry to book profits and have managed to hold onto a large part of the gains made during the week. Bitcoin climbed 16% this week, outperforming the S&P 500 Index, which fell 1.39%.
While trading above $30k it is hard to make a bearish bet on Bitcoin. That is specifically true if looking at what happened in the traditional currency market, where the US dollar strengthened across the board.
Not only Bitcoin but even Ether ETH $1,878 is showing signs of starting a bullish move. Glassnode data shows that Ether balances on exchanges dropped sharply in the past 30 days and hit a new low of 12.6%.
In November 2022, a similar dip in Ether exchange balances was seen, which was followed by a sharp rally of 33%. Although a rally is possible, traders need to be cautious because the fall in exchange balances this time may have been triggered by the U.S. SEC’s actions against Binance and Coinbase.
The crypto recovery is not limited to Bitcoin and Ether. Several other altcoins have risen sharply from their respective lows, indicating solid buying at lower levels, implementing a bullish sentiment.
Even the EUR/USD exchange rate dropped from 1.10 to 1.0850 on news that the European PMIs weakened more than the market expected. Also, the GBP/USD dropped on weak UK data.
Though the dollar strengthened over the last week, but not against Bitcoin.
Analytic viewpoint
Now it is to be seen whether new bull rally will see the return of the buyers in cryptocurrencies, or the higher levels will attract selling.
Bitcoin price
Bitcoin over the past 4 days Bitcoin has been trading near the $31,000. Usually, a tight consolidation near a major resistance level tends to resolve to the upside. If buyers kick and sustain the price above $31,000, the BTC/USDT pair could start the next leg of the upswing, but there is a resistance at $32,400 that is likely to be crossed. If that happens the pair may skyrocket toward $40,000. The first sign of weakness will be a break and close below $29,500. The pair is stuck between the 20-day EMA and $31,000, but this tight range trading is unlikely to continue for long. A range break above the $31,000 to $31,500 zone could start the next leg of the uptrend.
Ether price analysis
Ether has been facing selling at the $1,928 level for the past 3 days. The moving averages are on the verge of a bullish crossover and the Relative Strength Index (RSI) is in positive territory, indicating that the bulls are in command. If buyers overcome the barrier at $1,928, the ETH/USDT pair may surge to the overhead zone between $2,148 and $2,200.
The 4 hour chart shows that the price is stuck inside the range between $1,936 and $1,861. The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside.
