Bitcoin (BTC) held onto new higher levels at the Wall Street open on June 6 after the BTC/USD pair snapped a nine-week losing streak.
Stocks could push BTC all the way to the $37,000 level
Data from Cointelegraph Markets Pro and TradingView tracked the largest cryptocurrency as it hovered around $31,500 thanks to 6% daily gains.
The start of trading on Wall Street provided further support for the bulls as US stocks headed higher. The S&P 500 was up 1.4% at the time of writing, while the Nasdaq Composite was up nearly 2%.
For popular social media analyst Wolf, Bitcoin’s correlation with stocks could see further upside if the S&P 500 flips its 21-month EMA as support.
“$SPX sitting at the 21-monthly EMA, if it holds we will see $BTC rally to the same band now at $36,000-$37,000,” he summarized to Twitter followers on the day.
other message described BTC as “lagged” behind the S&P but poised to “recover very soon” should the former hold monthly support.
Cointelegraph contributor Michaël van de Poppe was also more bullish after $30,000 held overnight on the BTC/USD pair.
“Nice Bitcoin move overnight as we held the area around $29,700 and continued to run,” explained.
“Resistance zone now, wouldn’t be long around here (might even break above $31,800 to grab liquidity). Consider around $30,500 level for potential new long and then we’ll target $32,800.”
Trader Pentoshi, however, maintained a conservative outlook and forecast a reversal for the S&P, which could well deflate the latest momentum in crypto markets.
#SPX nailed from top down and back up from 3840
Think they want to take out 4300’s before a reversal back down. Bear market rallies are brutal frenzy. They go higher then people think pic.twitter.com/RJVUjugtGo— Pentoshi (@Pentosh1) June 6, 2022
#SPX was nailed upside down and rallied back up from 3840
I think they want to hit 4,300 before a reversal to the downside. Bear market rallies are brutal. They go higher than people think
In the longer maturities, the mood was thus subdued in the face of continued monetary tightening by central banks and runaway inflation.
For commentator Bob Loukas, the summer seemed uninspiring for cryptocurrencies.
“It’s probably going to be a dull summer in the crypto space. The heavy selling is over, now it’s the down period where only the smart money accumulates.”, recognized.
“Once all the weak hands have been dumped, higher prices will be needed and the new cycle can start. Still aiming for the end of the year.”
Altcoin analyst: “The worst can be much worse”
Some of the major altcoins, meanwhile, jumped at the chance to capitalize on Bitcoin’s gains.
Among them is Ether (ETH), the largest altcoin by market cap, posting daily gains of over 7% to break above $1,900.
“Nice boost in $ETH here”, commented Van de Poppe in a separate update.
“Getting closer [al] first point of resistance, but given the HL and the current rally in $BTC, I think we are in for a few weeks of green where we will be looking for evidence around $2,300–$2,500 in $ETH as well.”
Among the top ten cryptocurrencies by market cap, Cardano (ADA) and Solana (SOL) are up more than 10% on the day.
Of the top fifty tokens, only one, Elrond (EGLD), traded in the red.
Loukas, however, pointed out that Bitcoin’s marketability could cost altcoins heavily in the coming months.
“With BTC about 3-6 months from dollar lows, watch out for altcoin positions. Worst can be much worse,” warned part of a tweet
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investments and operations involve risk, so you must carry out your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.