This is a key psychological support for the bulls now and luckily for them, the market makers and whales are on their side for now. Since the end of April, we have seen a rise in unhedged shorts marking an increase in the level of complacency among retail bears. Many bears have become comfortable taking high risks now that BTC/USD has entered a downtrend and repeatedly failed to break above $10k.
That being said, it is very important to be cautious and not to get caught up in the prevalent bearish sentiment. It is in the interest of the market makers and the whales for the sentiment to flip bearish near-term and for many retailers to enter short positions so they can be shaken out just before the beginning of that most anticipated downtrend. This happened the last time as well but this time, it could be more aggressive. In any case, it would be very surprising to see BTC/USD close above $9.8k or higher on the daily time frame.
The near-term outlook of the stock market is in line with that of the cryptocurrency market. Both markets are expected to see further upside. The S&P 500 (SPX) is already well positioned to rally higher and now Bitcoin seems to be garnering ample bullish momentum to surge higher as well. Meanwhile, EUR/USD also remains bullish and has the Ichimoku cloud support on its side. All of this means that we might see near-term bullishness in these markets for now which means that the bulls might not back down just yet.
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