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Home»Analysis»Dead Cat Bounce or Full Blown Rebound?
Analysis

Dead Cat Bounce or Full Blown Rebound?

June 7, 2025No Comments2 Mins Read
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After a recent rift between Elon Musk and Donald Trump, Bitcoin (BTC) has experienced increased volatility in the crypto market. The flagship coin dipped below $101k before bouncing back to trade around $104,543 on Friday, June 7, 2025.

The heightened volatility in the crypto market has led to a spike in forced liquidations, causing concern for potential short-term selloffs. Bitcoin’s fear and greed index dropped from over 62 percent to about 45 percent, indicating a shift from market greed to fear.

What’s next for Bitcoin’s price? After reaching a new all-time high of $111,690, BTC price has been following a symmetrical falling channel pattern. The recent rebound suggests that BTC price is still within this falling trend.

Technically, BTC price is at a critical juncture. A golden cross has been recorded in the daily timeframe between the 50 and 200 Moving Average Simple (SMA), indicating a potential rally towards a new all-time high. In the four-hour timeframe, the MACD line crossing the signal line suggests a bullish sentiment, possibly pushing BTC price beyond $106k.

On the flip side, the lack of a solid reversal pattern after being stuck in a falling channel could lead to a correction if BTC price closes below the support level at $103,329. This could trigger a further decline towards the support level at $101,570.

Overall, the future direction of Bitcoin’s price remains uncertain, with both bullish and bearish scenarios on the table. Traders and investors will need to closely monitor key support and resistance levels to determine the next move in the crypto market.

See also  Analyst Says It’s Time for New Ethereum All-Time High, Sees Bitcoin Going ‘Full Santa Claus Mode’
Blown Bounce Cat Dead Full Rebound
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