Cryptocurrency proponents have taken a breather from recent market troubles thanks to the December 2 increase in Decentralized Finance (DeFi) and Dogecoin (DOGE). Sentiment has also picked up, but currently leading digital assets are still facing a retreat at the most important general resistance levels.
Data from Cointelegraph Markets Pro and TradingView show that bitcoin price rose 7.3% from a low of $ 35,645 on June 1 to an intraday high of $ 38,250 on June 2, and Ether showed a similar size gain of 7.7% if briefly. collect $ 2800. Support level.
While the price rally pretty much calls for the 2021 beef market to continue, some analysts have pointed to a possible bearish science education on the bitcoin chart that could push the price down to $ 16,000.
Bitcoin banner structure and its main disadvantages. Source: TradingView
Market halt or breath of the beef market?
Bitcoin’s volatile price movement over the past month has led many to wonder if Bitcoin’s peak or current correction is just a mid-cycle breach that will prepare the asset to continue when the rally resumes.
A deeper look at this issue was given in a recent report by Delphi Digital, which discussed MVRV Ratio, a chain calculation that measures the market value of bitcoin (MV) versus realized value (RV) as an indicator that can help traders identify market peaks. and bottoms.
Bitcoin MVRV by Price Ratio. Source: Delphi Digital
The graph above shows that the MVRV ratio became too high in early 2011, late 2013 and early 2018, “all of this represents cycle stops,” explains Delphi Digital. The researchers also suggested that “readings in May 2021 may well indicate the peak of this cycle.”
Delphi Digital is likely to peak in the current cycle, but also indicated that there is potential for the market to “see a double bubble result in 2013 when BTC hits ATH [all-time high], which will cause prices to plummet, and then he recovers. “He recovered long after ATH that same year.”
The report also highlights the fact that the threshold for determining a Bitcoin bottom has increased over time, which could change the situation in the beef markets in the coming years.
According to Delphi Digital:
“Given the sharp drop in MVRV so far, BTC may see a smaller decline and a faster bottom than in previous cycles. It may look like global stocks that have several months of declines and multi-year bullish cycles. ”
As a warning, the report notes that while there is “a lot of conflicting data and emotion” in the market right now, there will likely be “an episode of medium recovery in the coming weeks as the price moves away from its 50-day move.” average.”
BTC Basic Mode: means bounce. Source: Delphi Digital
Historically, the BTC price has been fairly close to the 50-day moving average. Looking at previous withdrawals, BTC has always formed a healthy rally after a deep rebound. This is the result of natural market reflexivity. ”
Altcoins offer double-digit collections
Altcoins posted double-digit gains during the June 2 price action, led by a 53% rise in Kyber Networks KNC token prices, which is now back over $ 2.50. KAVA is also up 37% and is now trading around $ 4.70.
Daily performance in the cryptocurrency market. Source: Coin360
Dogecoin, KSM token, and CRV Curve DAO also helped increase altcoin fees, with prices up about 25%, while OKB gained 33% and traded around $ 17.70.
The total market value of the cryptocurrency is now $ 1.709 trillion, with bitcoin dominance at 41.5%.