Bitcoin traders weigh next move with BTC price at crucial 200-week trendline
2023.06.08 10:43
Bitcoin (BTC) cooled the volatility into the June 8 Wall Street open as market participants waited for signals.
BTC/USD 1-hour candle chart on Bitstamp with 200WMA. Source: TradingView
BTC spot clings to 200-week moving average
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling a key long-term trend line near $26,500.
After flash volatility surrounding industry news events, the pair returned to sideways trading after bouncing from three-month lows.
Now, the 200-week moving average (WMA) formed a critical focus.
“We are currently sitting right on the 200WMA,” trading suite DecenTrader wrote in part of the day’s analysis.
DecenTrader opted for a conservative view of short timeframes, warning over an increasing long/short ratio on exchanges and that the United States trading session may open with selling.
The LTF bear case for #Bitcoin:
The Long/Short ratio is continuing to increase.
We are currently sitting right on the 200WMA.
The US market tends to sell when they wake up, especially if there’s more negative news. pic.twitter.com/ajorEbYr7n
— Decentrader (@decentrader) June 8, 2023
Popular traders, including Crypto Tony, were on the sidelines until a more pronounced trend became apparent.
“This is the structure i am currently going by on Bitcoin and i remain out of a position while we are mid range,” he told Twitter followers on the day.
“No point rushing nay entries when things are not crystal clear. We had a good short before, now we prepare for the next entry.”
An accompanying chart showed a potential downside target in a “support zone” at just below $26,000.
BTC/USD annotated chart. Source: Crypto Tony/Twitter
“Unchanged view on Bitcoin. Consolidation, falling wedge. Not overly interesting until we get a breakout,” fellow trader Jelle agreed.
More optimistic takes came from popular trader King La Crypto, among others, who eyed a potential repeat of the upside from early March. This, as Cointelegraph reported, ultimately resulted in highs of $31,000.
It’s happening again.#Bitcoin $BTC pic.twitter.com/MfO67SMzU0
— King La Crypto (@kinglacrypto) June 7, 2023
DXY heads to support
Prior to the Wall Street opening, meanwhile, pronounced weakness in the U.S. dollar formed a potential reason for bullishness on crypto markets.
The U.S. Dollar Index (DXY) fell to its lowest in several days, targeting support from the monthly open and late May.
U.S. Dollar Index (DXY) 1-hour candle chart. Source: TradingView
Popular trader Mikybull Crypto was among those inferring a positive outcome for BTC.
“Correlating Dollar Index DXY and Bitcoin, we can see the market makers model in play,” he explained alongside a comparative chart.
“BTC still have one more leg up.“
BTC vs. DXY annotated chart. Source: Mikybull Crypto/Twitter
Magazine: Home loans using crypto as collateral: Do the risks outweigh the reward?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
