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Analyst says Bitcoin could see ‘a smaller drawdown and a quicker bottom'

Published 06/02/2021, 06:00 PM
Updated 06/02/2021, 08:00 PM
Analyst says Bitcoin could see ‘a smaller drawdown and a quicker bottom'

The cryptocurrency faithful got a reprieve from recent market struggles thanks to a rally in decentralized finance (DeFi) tokens and Dogecoin (DOGE) on June 2. A bit of a breakout in the price of Ether (ETH) and Bitcoin (BTC) may have also lifted sentiment, but at the moment, the top-ranked digital assets are still meeting pushback at key overhead resistance levels.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin rallied 7.3% from a low of $35,645 on June 1 to an intraday high at $38,250 on June 2, and Ether saw a similar-sized gain of 7.7% to briefly regain the $2,800 support level.

Bitcoin pennant structure and its primary downside target. Source: TradingView
Bitcoin MVRV ratio vs. price. Source: Delphi Digital
BTC base case: mean reversion. Source: Delphi Digital
Daily cryptocurrency market performance. Source: Coin360

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