Tech
Cryptocurrency Market Observatory: Bitcoin remains above $69,000 despite market sell-offs
Bitcoin experienced significant volatility over the weekend, trading below $71,000 following a surprisingly strong May jobs report. Despite the decline, the leading cryptocurrency remains above $69,000, reflecting cautious market optimism. Experts are closely monitoring Bitcoin resistance at $70,600 and support at $67,100.
The unexpected strength of the U.S. labor market added 272,000 jobs in May, beating forecasts and boosting investor confidence in potential interest rate cuts by September. Edul Patel, CEO of Mudrex, noted: “This strong job growth has fueled investor and trader optimism about potential rate cuts in September.”
General market sales
Last Friday, the price of Bitcoin fell below $70,000, erasing much of its weekly gains. This decline is part of a broader cryptocurrency market sell-off triggered by the robust jobs report. According to the CoinSwitch Markets Desk, “The report revealed that 272,000 jobs were added in May, significantly exceeding the forecast of 185,000. This strong jobs report, coupled with higher-than-expected wage growth, led to a sell-off in the stock market. futures and a rise in Treasury yields.”
The cryptocurrency market has also seen a significant decline in meme coins, with the GME meme coin plunging 50 percent from its highs. Roaring Kitty’s YouTube livestream, which failed to deliver any meaningful news, contributed to these losses.
Derivatives and ETF inflows
In the derivatives market, Bitcoin futures positions have hit an all-time high of $37.7 billion. This surge in open interest coincides with a series of net inflows into Bitcoin spot ETFs, which now stretches back 18 days. Analysts at 10x Research suggest that Bitcoin could potentially rally to $83,000 if it breaks above $72,000, completing an inverted head and shoulders pattern.
CoinDCX’s research team also highlighted high volatility this week due to key US macroeconomic data announcements. Despite the promising data, a sudden drop on Friday created mixed signals. “Key support levels to watch are around $68,400, $67,000 and $66,000,” they noted. On the upside, resistance levels are at $71,500, $72,350, and $73,500.
Shiv investor sentiment.”
Broader market trends
Ethereum has been slow moving, remaining mostly sideways and underperforming Bitcoin. Currently stuck at a key support level, ETH is expected to bounce if the market sentiment remains bullish. CoinDCX research team said, “The bounce from the daily 20-EMA support further suggests a bullish outlook for Ethereum.”
Rajagopal Menon, Vice President of WazirX, reported a 0.75% increase in Bitcoin, reaching $69,724 on June 10. He said: “Technically, Bitcoin has tested resistance at $70,000, marking the breakout of an inverse head and shoulders (IH&S) pattern. If this bullish reversal pattern holds, Bitcoin could target $90,000 in July.”
XRP fights
XRP has broken below the crucial $0.5 mark, indicating ongoing bearish sentiment. Technical indicators show XRP trading below the 50-, 100-, and 200-day moving averages, signaling persistent downside pressure. Increased trading volumes point to significant selling and a lack of buying interest.