 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Cryptocurrencies showed signs of recovery on Tuesday following yesterday’s market-wide pullback in response to charges filed against Binance by the U.S. Securities and Exchange Commission (SEC). The positive movement comes despite the fact that the SEC also filed charges against Coinbase, the largest crypto exchange in the U.S., on Tuesday morning.
Stocks also managed to finish the day on a positive note after a volatile day of trading, with the S&P, Dow and Nasdaq all closing in the green, up 0.24%, 0.03%, and 0.36%, respectively.
Data from TradingView shows that Bitcoin’s (BTC) price initially sold off after the charges against Coinbase were revealed, plunging to a low of $25,470 before dip buyers showed up in force to aggressively bid the top crypto back above $27,000 during afternoon trading.
BTC/USD Chart by TradingView
Bitcoin was actually on the road to recovery prior to the charges against Coinbase, with July Bitcoin futures prices trading slightly up in early trading on Tuesday in what Kitco senior technical analyst Jim Wyckoff called “a mild upside correction after hitting a nearly three-month low on Monday.”
Bitcoin futures 1-day chart. Source: Kitco
“The bears have regained the overall near-term technical advantage as they have re-established a price downtrend on the daily bar chart,” Wyckoff added.
According to analysts at MN Trading, the breakout attempt last week ultimately failed, and following Tuesday’s recovery, Bitcoin is “now back in the consolidation range, with imminent support at 26.7k and resistance at 27.6k.”
BTC/USD 1-day Chart. Source: MN Trading
“If the 26.7k support breaks, we could see another test of the lows and around 25.8k and below towards 25 - 25.6k,” MN Trading said. “If the trendline resistance, and more importantly the horizontal level of 27.6k can be broken, the area we would need to see support established in for a healthy continuation upwards is 28 - 28.5k and an RSI break above 50.”
Following Tuesday’s bounce-back in the BTC price, MN Trading founder Michaël van de Poppe declared that “the correction is over,” and posted the following tweet outlining where he thinks Bitcoin is headed next.
Back to $27K.
— Michaël van de Poppe (@CryptoMichNL) June 6, 2023
Great bounce from the 200-Week MA.
Time to start the new uptrend to $38-42K on #Bitcoin.
Reversal of fortune for the altcoin market
All but a handful of tokens in the top 200 were in the green on Tuesday, a complete reversal of fortune from Monday, when all but one token traded in the red.
Daily cryptocurrency market performance. Source: Coin360
TomoChain (TOMO) led the top gainers with an increase of 20.35% to trade at $1.40, while Metal DAO (MTL) gained 19.44% and Pepe (PEPE) increased by 17.47%.
The overall cryptocurrency market cap now stands at $1.122 trillion, and Bitcoin’s dominance rate is 46.2%.
