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Is crypto market recovering?
2021-06-03 • Updated
Summer brings positive inflows into the crypto market! After a significant fall below 30,000 from its all-time highs, Bitcoin has been moving up this week. On Thursday, it was trading above 38,000, moving closer to the psychological level of 40,000. Other major cryptocurrencies strengthened as well. For example, Ethereum rose towards 2900. Can we already talk about the crypto market recovery or it is too early to jump to conclusions?
Bullish factors for BTC
As speculative mania around the meme stocks continues in social media, the crypto market may drag the attention of retail traders, too. This week, AMC Entertainment jumped to 62.55, while Bed Bath & Beyond was up 16.93. Given that traders of meme stock like crypto and have easy access to it, they may try to change the direction of the BTC.
Another important thing in the crypto world happening this week is the Bitcoin Conference in Miami. The event will gather more than 20,000 attendees, including famous crypto celebrities and crypto millionaires. The convention will last for three days starting on June 4. Any interesting opinions may add volatility to the crypto market.
Bearish factors for BTC
On the flipside, there are negative factors that add pressure to crypto performance. First of all, various regulators again turn their heads to the privacy concerns of the crypto market. One of the strictest among them is, of course, the Chinese government. It has serious intentions to tighten crypto regulations. JP Morgan is bearish on crypto as well, as it sees the correction to continue to $26,000. According to the bank, a weaker institutional demand after May’s crash is the main reason to believe that the downtrend is set to continue.
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The technical picture of the BTC and ETH
While we don’t see a strong bullish trend in both charts of BTC/USD and ETH/USD just yet, there are several reasons to consider these assets for trading. By the way, you can trade BTC and ETH against your favorite major currencies in FBS Trader!
On the daily chart of BTC/USD, there is a consolidation between 40,000 and 33,600 levels. The breakout to the upside will lead to further highs at 42,000. If the support of 33,600 is broken, the pair will slide to the next support at 30,800.
As for ETH/USD, it has almost reached the 2900 level. If the asset breaks higher, the Gartley pattern will be formed. In that case, the next target will lie at 3160.
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