Cryptocurrencies are going through a tumultuous period, marked by a significant drop in prices. Bitcoin and Ethereum, the two main cryptos, are particularly affected. This collapse raises questions about the future of the market and the forces at play. Let's analyze this situation in detail.
Selling Pressure: A Threat to Bitcoin
Bitcoin, often seen as a safe haven in the crypto sphere, is not immune to market fluctuations. The crucial support level to watch on the daily chart is $66,205. This threshold coincides with a major resistance line.
A close below this level could intensify selling pressure, causing the price to fall further.
Conversely, the most important resistance level for Bitcoin is $69,667. Recently, this level has generated strong resistance pressure, preventing the price from moving higher.
A daily close above this threshold could revive hopes of an upward trend. However, investors should remain cautious as market movements are often unpredictable.
If the flagship crypto closes below $66,205, selling pressure could accelerate. This situation could push the price to new lows, further eroding investor confidence.
Increased market volatility heightens risks, making predictions difficult. Traders should therefore carefully monitor these critical levels.
Ethereum: Between consolidation and selling pressure
Ethereum, the second largest crypto, is also under significant pressure. On the daily chart, a consolidation emerged following the breakdown of a triangle formation.
This consolidation is often a sign of stability, but the current selling pressure has broken the key support level.
For crypto ETH, the support level the largest is $3,502. A daily close below this level could trigger an increase in selling pressure, negating recent bullish ETF-related gains. This situation would be worrying for investors, who were hoping for a lasting rebound.
The key resistance level for this crypto is the 9 EMA of $3,689. A daily close above this level could provide momentum to the price, paving the way for a recovery. However, the market remains fragile, and investors must remain vigilant in the face of unpredictable fluctuations.
In the coming days, Ethereum's behavior around support and resistance levels will determine its trajectory.
Investors must be prepared to react quickly to market movements to minimize losses and maximize potential gains. Patience and caution are required during this uncertain time.
Macroeconomic factors: A determining influence
Bitcoin and crypto ETH price fluctuations cannot be fully understood without examining macroeconomic factors. The global economic situation plays a crucial role in the movements of cryptocurrencies.
Economic reports, such as US employment data, have a significant impact on the cryptocurrency market.
For example, a recent report found stronger-than-expected job growth in May, which contributed to Bitcoin's decline. This data influences investor decisions and trading strategies.
Decisions by central banks, including the United States Federal Reserve and the European Central Bank, also affect cryptocurrencies. For example, lower interest rates can make risky assets like Bitcoin more attractive. However, uncertainties around future central bank decisions add a layer of complexity to market analysis.
General investor sentiment also plays a role. Fear, uncertainty, and doubt (FUD) can lead to sell-offs, while excessive optimism can lead to impulsive buying.
Investors must remain informed and vigilant, taking a proactive approach to managing risks. Caution is essential in this uncertain landscape. The future of cryptos remains promising, but the road is strewn with pitfalls. Indeed, the risk of liquidation persists around 71k.
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