A stream of bullish Bitcoin adoption news helped to push Bitcoin price back above $37,000 but traders need to watch out for death cross

Bitcoin price reversed to the upside and recorded a 20% increase to $37,500. The cause is probably El Salvador’s adoption of BTC as a legal tender. However, the uptrend was also hampered by the authorities in China ordering Chinese search engines to block search results related to the top crypto exchanges in the world.

According to Santiment, Bitcoin whales aren’t slowing down their accumulation of BTC, and the uptrend of tokens held by these addresses holding 1,000+ BTC continues.

A stream of bullish Bitcoin adoption news helped to push Bitcoin price back above $37,000 but traders are uncertain of a trend reversal

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin price jumped 20% from a low of $31,000 late on June 8 to an intraday high of $37,550 as bulls look to take control of the coin.

According to Delphi Digital, the clear head and shoulders pattern seen on the BTC chart is a potential bearish indicator.

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Bitcoin head and shoulders pattern | Source: Delphi Digital

Despite this bearish pattern, analysts also note that a bullish RSI divergence has also formed, suggesting a possible trend reversal in the near future.

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Bitcoin price and a bullish divergence on the RSI | Source: Delphi Digital

Accordingly, Bitcoin seems to need to watch out for the death cross indicator. A death cross is a bearish technical signal be looming in price charts. It could point to trouble ahead for BTC amid regulatory and environmental concerns.

Previously, every time this indicator was encountered, Bitcoin dropped sharply. For example, the decline of 70% in 2018 and 47% in 2019. The sign of death in 2020 occurred shortly after the market crash caused by the coronavirus pandemic in March, which proved to be a signal. late at that time.

A looming death cross could limit upside moves. Resistance is seen at around $40,000, which has capped short-term price gains over the past week. Although the sell-off from May is stabilizing, the long-term technical outlook looks less optimistic.

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Bitcoin daily price chart shows historical death cross cycles | Source: TradingView

Currently, buyers are defending the short-term support above $30,000. A slight rally is typical after the price breaks below the 50-day moving average. After that, a series of lower prices usually confirm a transition from an uptrend to a downtrend.

Traders are also keeping a close eye on Ethereum. There was a large ETH outflow seen on June 8. This is a positive sign that the ETH bull run is not over yet. Ether has seen its price rise 14% from a low at $2,300 on June 8 to an intraday high near $2,630. Ether is being supported by a drop in the circulating supply of Ether as 23% of its supply is now locked to a smart contract.

a-stream-of-bullish-bitcoin-adoption-news-helped-to-push-bitcoin-price-back-above-37000-but-traders-are-uncertain-of-a-trend-reversal

The supply of Ether is locked in smart contracts against the price. Source: Delphi Digital

Other notable performances include a 23% increase in the price of Kusama (KSM) to an intraday high of $486 following the launch of the Kusama parachain auctions and an 18% increase in the price of Curve DAO Token (CRV). to $2.50.

The overall crypto market capitalization stands at $1.63 trillion and Bitcoin dominance is at 43%.

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