Since Saturday, the 6th of June, Bitcoin has climbed 8.10% from a low of $59,500 to $64,318. The $64k area was a short-term supply zone.
But it is unclear if the bulls can flip it to support and continue their advance.
On the other hand, the altcoin market was up a slightly more modest 6.24% since last Saturday, but both Bitcoin and TOTAL2, which tracks the altcoin market capitalization, were in long-term downtrends.
By comparison, Terra Classic [LUNC] was up by 34% since last Saturday’s low. With a market cap of only $405.8 million, it can be argued that it requires less capital to move LUNC prices.
Another factor that helped explain the relatively stronger LUNC gains was the higher timeframe price structure. AMBCrypto reported that the Terra Classic trend was bullish after its rally to new highs in early May.
It had retraced to $0.000062 by the 6th of June, just above the $0.000054 level that was the 78.6% Fibonacci retracement. The developments since then have reinforced a bullish outlook on the price front.
LUNC bulls conquer local resistance zone, driving another 10% bounce
The $0.0000688 area (cyan) had been a local resistance zone a week ago but has since been breached and retested as support. The subsequent price bounce has reached $0.000075.
This zone had been a support in mid-May and was likely to serve as resistance now.
Based on the higher timeframe LUNC trend, a rally to $0.0001-$0.000123 can be expected. Yet, traders should remain wary.
Sustained capital inflows are needed to drive a recovery. However, since the 7th of June, the spot trading volume on Binance has been falling.
A price bounce, even from key levels, on weak trading volume raised suspicion about bullish strength. A Bitcoin selloff can hurt LUNC’s progress, so traders should keep an eye on the leader’s trends, too.
Final Summary
- The Terra Classic bullish performance over the past week could be just the start of another upward impulse move.
- A stabilizing Bitcoin would aid LUNC’s bullish chances, but a BTC sell-off could leave a huge dent on the altcoin’s sentiment.