Bitcoin (BTC) price has reached a stage in the bear market where investors are divided. There are now two large groups: those who believe in a relief rally and those who score new lows.
Meanwhile, Bitcoin closed its first green candle on May 30, after nine consecutive weeks of red candles. In that vein, with BTC again forming another green candle on June 6, investors are hopeful.
According to analyst Michaël van de Poppe, the next crucial resistance zone for BTC is between $31,200. Furthermore, he claims that the second of two support zones between $29,600 and $29,200 is showing strength.
Based on this, he believes the trend for June is sideways or bullish, but not bearish as support is firm.
On the other hand, expert Jordan Major pointed out that there is a lot of “new” BTC on exchanges, which could be a bearish sign.
“There was a total of up to 71,700 BTC brought to exchanges during the first week of June. And that’s not good,” he said.
Still according to him, these “new” BTCs may reflect a lack of trust among investors. In this way, cryptocurrencies would be on exchanges to be sold in the event of a large sell-off.
Analyst Ali Martinez also agrees with this position. He highlighted that the same movement occurred in other years.
“In May 2021, March 2020 and December 2018 declines were also driven by ‘new’ BTC on exchanges”
This hasn’t scared off retail investors, though, who believe BTC will trade at $35,000 in June. That’s according to data from CoinMarketCap’s community analysis, which has 80% historical accuracy.
Major also highlighted that intraday volatility around the Bitcoin price appears to have subsided. So, if BTC holds at this level between $29,000 and $31,000, things could improve by the end of the month.
“Investors need to exercise caution and avoid being swayed by their feelings or fear of losing,” he concluded.
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