Bitcoin (BTC) retained new higher levels at the June 6 Wall Street open after BTC/USD snapped a nine-week losing streak.
Stocks could take BTC as high as $37,000
Data from Cointelegraph Markets Pro and TradingView followed the largest cryptocurrency as it circled $31,500 on the back of 6% daily gains.
The start of Wall Street trading provided further support to bulls as United States equities headed higher. The S&P 500 traded up 1.4% at the time of writing, while the Nasdaq Composite gained close to 2%.
For popular social media analyst Wolf, Bitcoin’s correlation to stocks could see further upside should the S&P 500 flip its 21-month exponential moving average (EMA) to support.
“$SPX sitting on the monthly 21EMA, should it hold, we will see $BTC recover to the same band now at $36–$37K,” he summarized to Twitter followers on the day.
A further post described BTC as “lagging” behind the S&P but apt to “recover pretty soon” in the event of the former holding monthly support.
Cointelegraph contributor Michaël van de Poppe was also more optimistic after $30,000 held overnight on BTC/USD.
“A nice move of Bitcoin overnight, as we held the area around $29.7K and continued to run,” he explained.
“Resistance zone now, wouldn’t be longing around here (might even sweep above $31.8K to take the liquidity). Looking at around $30.5K for a potential new long and then targeting $32.8K.”
Fellow trader Pentoshi, nonetheless retained a conservative outlook, forecasting 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 frens. They go higher then people think pic.twitter.com/RJVUjugtGo
— Pentoshi (@Pentosh1) June 6, 2022
On longer timeframes, the mood was thus subdued in the face of ongoing monetary tightening by central banks and rampant inflation.
For commentator Bob Loukas, the summer looked to be uninspiring for hodlers.
“Probably going to be a boring summer in Crypto. The heavy selling is done, now it’s the doldrums period where only smart money accumulates,” he acknowledged.
“Once all the weak hands have turned over, higher prices will be needed, and the new cycle can begin. Still targeting late in year.”
Analyst on altcoins: “Worse can get much worse”
Some major altcoins, meanwhile, took the opportunity to capitalize on Bitcoin’s gains.
Related: BTC price snaps its longest losing streak in history — 5 things to know in Bitcoin this week
Among them was Ether (ETH), the largest altcoin by market cap, which saw daily gains in excess of 7% to pass $1,900.
“Good momentum on $ETH here,” Van de Poppe commented in a separate update.
“Approaching [the] first point of resistance, but given the HL and the current recovery on $BTC, I think we’re up for a few weeks of green in which we’ll be looking for tests around $2,300–$2,500 on $ETH too.”
Elsewhere in the top ten cryptocurrencies by market cap, Cardano (ADA) and Solana (SOL) both jumped an excess of 10% on the day.
Out of the top fifty tokens, only one, Elrond (EGLD), traded in the red.
Loukas, nonetheless, noted that Bitcoin’s market cap was apt to cost altcoins big in the coming months.
“With BTC maybe 3–6 months from $USD bear lows, watch out on ALT positions. Worse can get much worse,” part of a tweet warned.
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