Bitcoin Bulls On Edge As Pivotal Level Sets Stage For Potential Price Surge Or Slump

Ronaldo Marquez

Last Updated: June 11, 2024 9:43 am

3 mins read

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Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has experienced a volatile market over the past few days, with its price fluctuating between highs and lows. However, BTC has recently bounced back from a major trend line at $27,000 and is currently trading at $29,600, representing a profit of over 8% in the last 24 hours.

This latest surge in BTC’s price comes after the collapse of a major US bank, First Republic Bank. The news of this collapse may have contributed to the uptick in BTC’s price, as investors seek alternative investment options after the bank’s failure.

Another Bank Failure Tied To BTC’s Price Surge

Theto the trader and analyst, who goes by the pseudonym “CJ,” has identified what they believe to be the current parameters for the market. According to CJ, if Bitcoin’s price closes above 30k and the US dollar index (DXY) breaks to a range of 97-100, the market will likely reach the 33k liquidity level. However, if Bitcoin’s price rejects this level and closes below 29250, it could be a bearish re-test.

It is worth noting that Bitcoin has recently bounced from a key pivotal support level of $27,000, which is good news for bulls in the short term. However, the market is still uncertain whether Bitcoin will break above the $30,000 resistance again or experience another slump.

On the other hand, the recent bank failure, as described by Nick Gerli, CEO and Founder of Reventure Consulting, has highlighted the potential risks associated with traditional banking and finance. This has led investors to question the stability of the traditional financial system and seek alternative options.

On the contrary to this situation, Bitcoin has been on the rise since the beginning of 2023, and some analysts believe that the current economic climate could be a contributing factor. The recent contraction in the money supply in the US has led to a decrease in available capital, which could lead investors to seek alternative investment options.

With its decentralized nature and limited supply, Bitcoin has become an attractive option for investors looking to diversify their portfolios. Furthermore, Bitcoin’s recent price uptick can be attributed to several factors, including increased institutional adoption and growing mainstream acceptance. However, the current economic climate has undoubtedly played a role in Bitcoin’s recent surge in value.

As the economic outlook remains uncertain, many investors turn to Bitcoin as a safe haven asset. The cryptocurrency has been touted as a hedge against inflation and economic instability, and its recent price uptick could reflect these beliefs.

Bitcoin Highs Already Made For The Year?

The Puell Multiple, a metric used by cryptocurrency traders and analysts to gauge the value of Bitcoin, has recently made a perfect retest of its uptrend, according to CryptoCon, a trader and analyst of the crypto market. This retest suggests that the upward trend of Bitcoin remains intact and could potentially lead to much higher valuations in the future.

The Puell Multiple is calculated by dividing the daily issuance value of Bitcoin by the 365-day moving average of the daily issuance value. It is a useful metric for understanding the current state of Bitcoin’s mining ecosystem and can provide insights into the potential future direction of Bitcoin’s price.

With the Puell Multiple’s recent retests of its uptrend, CryptoCon suggests that the upward momentum of Bitcoin remains strong and could lead to even higher valuations in the future. This is welcome news for bulls eagerly anticipating a continued rise in Bitcoin’s price.

Featured image from Unsplash, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

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With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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