Bitcoin spiked on Monday evening, printing its first green weekly candle in 10 weeks, as the global cryptocurrency market cap rose 3.3% to $1.3 trillion at press time.
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Why It Matters: Cryptocurrencies traded higher on Monday, with Bitcoin above the $30,000 mark. They tracked equities that were buoyant on the back of an improving COVID-19 situation in China, optimism over the U.S. labor market, and the Federal Reserve’s blackout period, according to Edward Moya, a senior market analyst with OANDA.
At press time, stock futures slipped into the red with S&P 500 and Nasdaq futures down 0.3% and 0.4%, respectively.
“Bitcoin is definitely forming a base as prices advanced despite some choppiness in equities. Bitcoin above $30,000 is key for some short-term investors and a move above $33,5000 could trigger some technical buying,” said Moya, in a note seen by Benzinga.
Despite cryptocurrency markets showing some relief on Monday, the apex coin still faces resistance.
“Bitcoin is now facing significant resistance around $31,500-$32,000, but if it can hold above this level, we can expect continuation to the upside,” said Marcus Sotiriou, an analyst with GlobalBlock, a United Kingdom-based digital asset broker.
Coinglass liquidations data indicates that the majority of sellers are yet to capitulate. At the end of last month, there was an uptick in long liquidations.
BTC Liquidations — Courtesy Coinglass
Cryptocurrency trader Justin Bennett tweeted that a “big battle” at $31,300 is expected, which he said is the failed level from late May.
“I tend to think this rally fails but we'll see where today closes,” said Bennett. “I'm not ruling out a June 2021 style sweep of the May lows before we get that relief rally.”
Big battle at $31,300 $BTC as expected. That's the failed level from late May.— Justin Bennett (@JustinBennettFX) June 6, 2022
I tend to think this rally fails but we'll see where today closes.
I'm not ruling out a June 2021 style sweep of the May lows before we get that relief rally. #Bitcoin pic.twitter.com/qn8c3nJcPH
If crowd optimism picks up steam, Bitcoin prices could stay down, said Santiment in a tweet. The market intelligence platform said if skepticism continues there’s a greater chance of a rise.
As #Bitcoin hovers around $31.4k to end Monday's mildly positive day, our community is monitoring whether crowd optimism picks up. If so, there's a higher chance of prices staying down. If skepticism continues, there's greater historic chance of a rise. https://t.co/oiyIC8rM6y pic.twitter.com/PYKjrIHaSO— Santiment (@santimentfeed) June 6, 2022
Glassnode said in a blog post that the majority of Bitcoin buyers from the last 17-months are now holding unrealized losses. Miner revenues too have slipped substantially, according to the on-chain data company.
While the miners had been net accumulators during the first drawdown of Bitcoin from an all-time high — since the LUNA fiasco they have distributed over 10,000 BTC.
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