The volatility of Bitcoin (BTC) decreased prior to the opening of Wall Street on June 8 while market participants awaited indications.
BTC spot clings to 200-week moving average
Data from Cointelegraph Markets Pro and TradingView indicated that the BTC/USD pairing was hovering around a key long-term trend line near $26,500.
Following the extreme fluctuation in response to industry news, the pair of assets settled into a period of sideways trading after bouncing back from three-month lows.
The 200-week moving average (WMA) has become a key point of focus.
“In the day’s analysis, Decentrader’s trading suite noted that they were ‘sitting right on the 200WMA’.”
Decentrader adopted a cautious approach to short-term outlooks, cautioning that the ratio of long to short positions on exchanges is on the rise and that the U.S. trading session may begin with selling.
Popular traders, such as Crypto Tony, stayed away from the market until a clearer trend emerged.
“On the day, he informed his Twitter followers that he was adhering to a certain strategy with Bitcoin and was staying out of a position while the market was in a mid-range.”
The accompanying chart indicated a possible downside target in a “support zone” at slightly below $26,000.
Jelle concurred, “The perspective on Bitcoin remains unchanged. It’s a period of consolidation, forming a falling wedge. Nothing too exciting until we get a breakout.”
Popular trader King La Crypto and others with more optimistic outlooks predicted a possible repeat of the gains seen in early March, as Cointelegraph reported, which eventually led to an all-time high of $31,000.
DXY heads to support
Before the Wall Street opening, the noticeable decrease in the value of the U.S. dollar created a potential cause for optimism in the cryptocurrency markets.
The U.S. dollar index (DXY) dropped to one of its lowest levels in recent days, aiming for the support that it had at the beginning of the month and at the end of May.
Mikybull Crypto, a well-known trader, was among those predicting a positive outcome for BTC.
He elucidated that the market makers model could be seen when correlating the Dollar Index DXY and Bitcoin, accompanied by a comparative chart.
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