- The Bitcoin price is consolidating at around $9,630 USD at the time of writing, but could prepare for another test of resistance at $10,500 USD according to technical indicators.
- The 1-day chart of the Chicago Mercantile Exchange (CME) for Bitcoin Futures shows a “golden cross” looming, which could trigger another bullish momentum.
The Bitcoin price has stabilized over the past 24 hours and is showing signs of recovery after Tuesday’s flash crash. After consolidating around the $9,500 mark yesterday, BTC is showing a slight upward trend at the time of writing (+1.4% within the last 24 hours) and is trading at just under $9,630. The market capitalization of Bitcoin stands at 177.6 billion USD.
Overall, the market sentiment among numerous analysts remains bullish. For example, the pseudonymous analyst “Credible Crypto” pointed out that the former resistance zone above USD 10,000 was tested by the breakout to USD 10,400 and has now become a support. The flash crash was bought up by the bulls, so that support has remained in the range between $8,800 and $9,200, as the following chart shows. According to the analyst, the bulls are therefore keeping the reins in their hands.
Don’t lose sight of the HTF [Higer Time Frames]…Our prior resistance region has now been broken and is now being tested as support. Bulls remain in control and gunning for the highs again imo. HTF has been bullish since posting this weeks ago, hope you have been buying the dips.
Furthermore, the pseudonymous analyst “Hornhairs” has pointed to another important technical indicator. Bitcoin has formed a “triple-top” formation, which puts the price in a bearish situation, but there is a diagonal, rising trend line that has held despite the flash crash, which could help to break this pattern. Should the formation be invalidated, which would happen with a breakout above $10,500, this could create a strong bullish momentum in the coming weeks and months.
Swept the weekend lows into the 1D bullish breaker and fib cluster.
Holding above Monday's low and Monthly open.
Daily market structure remains intact (bullish).
HTF triple top liquidity resting above at $10.5k.
I'm long. pic.twitter.com/W9KZ5mDxvy
— HornHairs 🌊 (@CryptoHornHairs) June 3, 2020
Beyond the spot market, however, there is also a bullish sign from the derivatives market. The 1-day chart on the Chicago Mercantile Exchange (CME) for Bitcoin Futures shows a “golden cross” emerging, which could push the 50-day moving average above the 200-day moving average. Since the Bitcoin Futures were listed on the CME in December 2017, the “golden cross” has formatted only once.
As a result, the Bitcoin price shot up in less than three months from under USD 8,000 to the 2019 high for the year of over USD 14,000. On the spot market, the “golden cross” already formed on May 20 of this year, but did not yet confirm the hoped-for bull run. However, the signal from the derivatives market could be stronger in that the underlying market is dominated by institutional investors and could therefore build up more buying power.