The crypto market has once again exhibited mixed price actions following notable recovery signs yesterday, spurred by the U.S. CPI data. Bitcoin (BTC) and Ethereum (ETH) are grappling with market volatility, while AI coins have prominently emerged among the top gainers, continuing their price momentum from the previous day. Bitcoin has relinquished yesterday’s gains, trading back at the $67,000 level. Similarly, Ethereum is fluctuating near the $3,500 mark. However, altcoins like Solana (SOL), XRP, and Dogecoin (DOGE) have experienced significant gains. Ether led a mid-morning bounce after U.S. Securities and Exchange Commission Chairman Gary Gensler, in his Senate hearing testimony, indicated that he expects spot Ether ETFs to receive full approval from his agency by the end of the summer.
Bitcoin managed to avoid another dip below $69,000 during the June 13th Wall Street open, as markets cautiously reacted to the latest U.S. inflation data. The U.S. Producer Price Index (PPI) for May came in lower than expected, indicating a potential easing of inflationary pressures. Despite this, Bitcoin bears have consistently sold during rallies over the past few months. Analysts are optimistic that a liquidity boost, driven by Bitcoin reaching “fresh all-time highs,” could finally break this trend. This optimism is reflected in the current market sentiment, as Bitcoin’s “whipsaw” price action continues to consolidate within a broad range of $66,500 to $72,000. Meanwhile, Bitcoin’s price remains locked in a post-halving re-accumulation phase, which could extend until September 2024. Drawing parallels with previous cycles, after the 2020 halving, Bitcoin underwent a 21-day consolidation before breaking out and reaching a record high of $69,000 in November 2021. In 2017, a similar consolidation phase lasted 48 days. These historical trends indicate that while the current phase might persist for several more months, it could eventually lead to substantial price gains, mirroring past post-halving performance.
Ether has just experienced one of its largest days of accumulation by long-term holders, who seemingly took advantage of a 2% price drop over 24 hours. This recent accumulation was only 6% less than the record set on September 11, 2023, when long-term holders bought 317,000 Ether as the price dipped below $1,600. This surge in demand occurs amidst an 8.49% price decline over the past seven days. Initially falling below $3,800 on June 8, Ether has struggled to rebound but has managed to stay above $3,400 throughout the period, according to market data. Meanwhile, the chair of the United States Securities and Exchange Commission (SEC) has suggested that spot Ether exchange-traded funds (ETFs) might receive final approval for trading by the end of September.
Additionally, Markets began to decline on Wednesday afternoon following the Federal Reserve’s hawkish policy meeting results. The U.S. central bank kept its benchmark fed funds rate range steady at 5.25%-5.50% but surprised investors with updated projections, indicating an expectation of just one 25 basis point rate cut in 2024. In contrast, futures markets had been pricing in two to three 25-basis point cuts this year. The May Producer Price Index (PPI) fell by 0.2%, contrary to expectations for a 0.1% increase. On a year-over-year basis, the PPI rose by 2.2%, below the forecasted 2.5%. Additionally, initial jobless claims rose to 242,000, nearly reaching a one-year high, and surpassing expectations of 225,000.
Technical Outlook:
BITCOIN:
Bitcoin dropped to $56,552 after correcting almost by 23% from its all-time high of $73,777. The lower shadow around the crucial support level of $56,000 indicated buying from these levels and the prices rallied up to $71,979. BTC is struggling to sustain and give a weekly close above $70,000 and continues to trade in a broad range between $72,000 to $66,000 with declining volumes. Breakouts on either side of the range will further decide the trend for the asset.
ETH:
ETH after giving a breakout above the ‘Descending Triangle’ pattern, the prices rallied up to $3,977. However, the bulls failed to cross the psychological level of $4,000 and started to trade in a range between $3,900 to $3,700 with declining volumes. The asset has broken the range on the downside but with low volumes and made an intraday low of $3,428. ETH has a strong support at $3,450 whereas $3,700 will now act as a resistance for the asset.
BNB:
BNB was consolidating and was trading in a range from $560 to $620. The asset finally gave a breakout above the range and made a new all-time high of $721. Post this move, BNB witnessed some profit booking at higher levels and failed to give a weekly close above the previous all-time high of $691. The prices corrected almost by 18% and dropped to $591.8. BNB has strong support at $600. If it holds the support then we may expect the bulls to resume the up move.
Weekly Snapshot:
| USD ($) | 06 Jun 24 | 13 Jun 24 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $70,757 | $66,304 | -6.29% | $71,735 | $66,633 | $71,907 | $66,123 |
| ETH | $3,812 | $3,469 | -9.00% | $3,887 | $3,724 | $3,838 | $3,431 |
| BNB | $710.46 | $599.52 | -15.62% | $720.67 | $589.77 | $710.84 | $592.29 |
| Crypto | 1w – % Vol. Change (Global) |
|---|---|
| BitCoin (BTC) | 3.02% |
| Ethereum (ETH) | 5.27% |
| Binance Coin (BNB) | -5.36% |
| Resistance 2 | $85,000 | $4,000 | $1.00 | $721 |
|---|---|---|---|---|
| Resistance 1 | $73,777 | $3,700 | $0.75 | $691 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $66,000 | $3,450 | $0.6 | $600 |
| Support 2 | $60,000 | $3,000 | $0.5 | $555 |
Market Updates:
- MicroStrategy plans a $500 million stock sale to fund additional Bitcoin acquisitions, reinforcing its commitment to BTC as a treasury reserve asset.
- Solana Labs has launched Bond, a new platform that will let non-crypto brands leverage the power of blockchain tech to engage with customers.
- United States Securities and Exchange Commission, Chair Gary Gensler suggested to lawmakers that the regulator could sign off on the final approvals for listing and trading shares of spot Ether exchange-traded funds (ETFs) within three months.
