On Friday, Bitcoin’s price increased by 0.69 per cent, bringing the world’s most widely used crypto to $68,600. For over two weeks, Bitcoin has remained in a similar price range. Market experts predict that if BTC fails to break the resistance point of $68,800 (roughly Rs. 52.7 lakh), it could enter a downward spiral. Ether, the second most valuable crypto, saw a 1.58 per cent loss, trading at $3,951 (roughly Rs. 3.2 lakh). Analysts are divided on the potential impact of low trading volumes, but Ethereum’s overall performance remains strong. Most crypto assets experienced declines on Friday, including Binance Coin, Solana, Ripple, Cardano, Shiba Inu, Avalanche, and Polkadot. Additional altcoins such as Near Protocol, Polygon, Uniswap, Cosmos, Stellar, and Cronos also saw their prices drop. The total crypto market cap decreased by 0.04 per cent over the past 24 hours, with the sector’s current valuation standing at $2.54 trillion.
Bitcoin is on the brink of entering price discovery, contingent on surpassing the critical resistance at its previous all-time high, according to crypto analysts. This peak was originally reached during the 2021 bull run and was retested on March 5 following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year. Despite multiple efforts to break through, Bitcoin has remained below this key level for about ten weeks. Analysts note that breaking through historical highs is “never an easy fight” and often requires time. They explain that supply needs to “dry up” near the resistance zone, with coins shifting from impatient to patient holders. This transition typically creates a more favourable environment for surpassing previous highs and entering a new phase of price discovery.
Ether has attempted to surpass the $3,900 mark multiple times over the past week but has struggled to maintain this level. The market appeared to be anticipating a boost from the anticipated approval of a spot Ethereum exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC), as Ether’s gains were notable on May 21, just two days before the decision. Essentially, part of Ether’s difficulty in breaking through the $3,900 resistance stems from the rally that occurred in anticipation of the ETF approval. Additionally, some investors’ disappointment over the delayed effective trading of the ETF has contributed to uncertainty and negative price impact. This situation could pose challenges, as Ether’s futures open interest reached an all-time high on May 28.
In the macro set-up, first-quarter U.S. GDP data aligned with expectations, while jobless claims surpassed predictions, fueling a bullish sentiment for risk assets based on the potential for sooner-than-expected loosening of financial conditions. Initial jobless claims reached 219,000 for the week, exceeding the forecast of 217,000 and rising from 215,000 the previous month. Popular traders noted an inversely negative reaction in both U.S. bond yields and the strength of the U.S. dollar. Consequently, the U.S. Dollar Index (DXY) fell by 0.33% on the day.
Technical Outlook:
Bitcoin
Bitcoin, after making the new all-time high of $73,777, witnessed a sharp correction and the prices broke the psychological level of $60k making a low of $56,552 (on 1st May). However, the lower shadow around the crucial support level of $56,000 indicated buying from these levels and the prices rallied up to $71,979. Post this move, BTC yet again saw some profit booking or selling above $70k levels. The asset is struggling to sustain and give a weekly closing above $70k. To witness further rally, it needs to break, close and sustain above its all-time high. $67,000 and $60,000 will act as a strong support for the asset.
ETH
ETH after making the high of $4,093 witnessed a sharp profit booking and the prices corrected almost by 31% and dropped to $2,817. On a daily time frame, the asset was trading in a ‘Descending Triangle’ pattern and was taking multiple supports at $2,850. The bulls finally succeeded in giving a breakout above the pattern and prices have rallied up to $3,977. However, ETH has a strong resistance at the psychological level of 4,000, once it breaks, closes and sustains above this level then we may expect it to further rally up to $4,500.
BNB
BNB after giving a breakout above $400 started moving up by making a ‘Higher High Higher Low’ pattern and surged up to $645. Post this move, the asset witnessed a sharp correction from the recent top and dropped to $495.8. BNB took good support at $500 and bounced back up to $634. However, the bulls failed to break the recent top of $645 and saw some selling pressure at higher levels. Currently, the asset is consolidating and trading in a range from $555 to $625 with declining volumes. Breakouts on either side of the range with good volumes will further decide the trend for the asset.
Weekly Snapshot
| Apr | May | Last Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $60,636 | $68,364 | 12.74% | $72,715 | $59,120 | $71,946 | $56,555 |
| ETH | $3,012 | $3,746 | 24.36% | $3,727 | $2,862 | $3,873 | $2,816 |
| BNB | $578.49 | $595.03 | 2.86% | $626.98 | $514.11 | $629.86 | $538.05 |
| crypto | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | -16.65% |
| Ethereum (ETH) | -0.26% |
| Binance Coin (BNB) | 10.51% |
| Resistance 2 | $85,000 | $4,500 | $1.15 | $691 |
|---|---|---|---|---|
| Resistance 1 | $73,777 | $4,000 | $0.95 | $645 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $67,000 | $3,700 | $0.75 | $585 |
| Support 2 | $60,000 | $3,300 | $0.5 | $550 |
Market Updates:
- Bitcoin financial services firm Unchained and the University of Austin have partnered to launch a long-term endowment fund holding Bitcoin.
- A crypto wallet reportedly belonging to multinational banking and financial services company DBS Bank holds over 170,000 Ether, worth nearly $650 million.
- Mastercard has launched its crypto credentials P2P pilot program in hopes of streamlining crypto transactions and eliminating user error for customers. The test includes Mastercard’s exchange partners Bit2Me, Lirium, Mercado, and wallet provider FoxBit.
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