Cryptocurrency loyalists have been spared recent market troubles thanks to the surge in decentralized financial tokens (DeFi) and Dogecoin on June 2nd. A little break in prices for Ether (ETH) and from Bitcoin (BTC) The mood may have lifted as well, but for now, high-profile digital assets are still facing major levels of resistance.
Data from Cointelegraph Markets Pro Yes TradingView show that Bitcoin price rose 7.3% from a low of $ 35,645 on June 1 to an intraday high of $ 38,250 on Wednesday, and Ether (ETH) saw a similarly large gain of 7.7% to briefly break the support level from $ 2,800 to recover.
While the price rally has led many to declare the continuation of the bull market in 2021, some analysts have a possible one Bearish pennant formation on the Bitcoin (BTC) chart which could cause the price to drop to $ 16,000.
Market roof or bullish respite?
Bitcoin price volatility over the past month has led many to speculate about it when the high is at BTC or when the current correction is just a pause in the middle of the cycle that prepares the asset to resume once the rally resumes.
In a recent report by Delphi Digital this topic will be deepened and analyzed the MVRV ratio, an on-chain metric that measures Bitcoin’s Market Value (MV) versus its Realized Value (RV) as an indicator that can help traders determine the highs and lows of the market.
The graphic above shows that the MVRV was overdrawn in early 2011, late 2013 and early 2018, “all represented peaks of the cycle”, according to Delphi Digital. The researchers also suggested that “The reading from May 2021 could very well indicate the climax of this cycle.”
While the cap may be in the current cycle, Delphi Digital also noted that there is a possibility that the market could “See a result that is similar to the 2013 ‘double rally’ when BTC hit an all-time high, the price fell sharply, and then rose well past the high that same year.”
The report also highlighted that the threshold for determining the bitcoin floor has increased over time, which could change the outlook for bull markets in the years to come.
According to Delphi Digital
“Given the sharp drop in MVRV so far, it is possible that BTC could see a small retracement and a faster bottom than in previous cycles. This would resemble something similar to global stocks showing corrections from several months and multi-year bull cycles. ” “
As a cautionary note, the report noted that while “There are a lot of mixed dates and sentiments” in the market today, there will likely be “a mean reversion episode in the next few weeks as the price deviates sharply from its 50-day moving average”.
“Historically, the price of BTC has been pretty close to its 50-day MA. And if you look at previous slumps, BTC has always shown a healthy recovery rally after a deep pullback. This is the result of natural reflexivity. From the market.”
Altcoins secured double-digit profits
Altcoins saw double-digit gains during Wednesday’s price action, led by a 53% increase in the price of Kyber Network (KNC) which is now back above $ 2.50. Kava.io (KAVA) also secured a gain of 37% and is currently trading at just under 4.70 US dollars.
Dogecoin (DOGE), Kusama (KSM) and Curve DAO Token (CRV) also helped lead the altcoin fee with price increases of around 25%. while OKB (OKB) orb was up 33% and is trading near $ 17.70.
The total market capitalization of the cryptocurrency is currently $ 1.709 trillion and the dominance of Bitcoin is 41.5%.
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