Bitcoin

This is Why Bitcoin Holders Can Expect BTC Price Rally In The Month of June

Written by: Nidhi Kolhapur

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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Jun 1, 2022

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Bitcoin price hints at a relief rally after trading in green and has surged above the $31000 threshold. As soon as Bitcoin weathered the calm waves of recovery that swept the cryptocurrency market, other altcoins began rebounding bullishly as well. Bulls have maintained their gains, with most coins trading in the green zone. 

Three indicators suggest that Bitcoin could see a price bounce in June, according to popular crypto expert Benjamin Cowen. Cowen says in a new strategy session that the first statistic pointing to a Bitcoin rally is a correcting US dollar currency index.

Why Will the BTC Price Bounce?

He said that while the US dollar currency index is rising in a parabolic surge, Bitcoin is falling. This is something we’ve seen before. Furthermore, if it will simply pulls up, we can see that the dollar has been on a parabolic rally for the past many months.

However, he said that it has since been pushed back a little. Unfortunately, this does not indicate that the dollar rise has ended. It could simply be that one needs to take a break for a time. However, this fall in the dollar leads to anticipation that risk-on assets could start to perform strongly for a few weeks.

“The reason, I think, is because we are in a macro risk-off time, and so I would argue cryptocurrencies are inherently riskier than equities, so equities are the first to move when it looks like we might be getting at least a few weeks of some relief, and then as long as that sustains, then crypto will kind of be next in line to go up as well.”   

He also points out that the Bitcoin Fear and Greed Index’s 90-day exponential moving average (EMA) is “lower than it’s ever been.”

The Fear and Greed Index, which ranges from 0 to 100, gauge market emotion. Extreme dread is prevalent in values between 0 and 24, whereas fear is prevalent in scores between 25 and 49. 

Market greed is defined as a score between 51 and 74, with a score above 75 indicating excessive greed. The Index’s 90-day EMA is currently around 23.56, according to Cowen, indicating the probability of a bounce.

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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