In the aftermath of a challenging week for cryptocurrency markets, traders are eagerly anticipating the release of crucial macroeconomic data. This week’s focus centers around the United States Consumer Price Index (CPI) report on June 13, followed by the Federal Reserve’s policy decision on June 14.
The outcomes of these events hold the potential to trigger significant reactions from both equity and crypto traders. While initial knee-jerk responses are expected, the market will be watching closely for any subsequent developments. Traders are advised to approach the coming days with caution, as increased market volatility is anticipated.
Despite the ongoing lawsuit against major exchanges Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC), Bitcoin whales are capitalizing on the opportunity to expand their holdings. According to a recent report by behavior analytics platform Santiment, Bitcoin whales have accumulated an impressive 57,578 Bitcoin since April 9, even during a period when the cryptocurrency experienced a 10% price decline.
Bitcoin has managed to maintain its position above the crucial support level of $25,250. Thus indicating robust buying activity at this threshold. Although downward-sloping moving averages favor bears, the positive divergence observed on the Relative Strength Index (RSI) suggests a potential reduction in selling pressure. Bulls will aim to propel the price above the 20-day Exponential Moving Average (EMA) at $26,654. As a result, it would clear the path for a potential rally toward the resistance line of the descending channel.
However, a reversal from the 20-day EMA would signal that bears are maintaining their selling pressure. This scenario could lead the BTC/USDT pair to retest the support at $25,250. A breakdown below this level might result in a decline towards the support line of the channel and potentially even to $20,000.
Ether made an attempt at recovery on June 11, but the shallow bounce indicates persistent selling pressure from bears during minor rallies. Bears aim to strengthen their position further by pushing the price below the immediate support level at $1,700, potentially initiating a deeper correction. While there is minor support at $1,600, a breach of this level could lead to a decline toward $1,352.
Conversely, if the ETH/USDT pair rebounds once again from $1,700, it would signify robust defense from the bulls. A rally above the resistance at $1,778 could pave the way for further upward movement toward the moving averages.
Following a breakdown from the ascending channel pattern on June 5, Cardano experienced significant selling pressure, resulting in a plunge below the critical support at $0.24 on June 10. The sharp drop pushed the RSI deep into the oversold territory, suggesting a potential near-term end to the selling frenzy.
Strong buying interest emerged at $0.22, initiating a recovery that may lead to a price target of $0.29 and subsequently the 20-day EMA at $0.33. This zone is expected to witness intense battles between bulls and bears. A downturn from this zone would confirm the continued dominance of bears in the market.
On June 10, bears drove Dogecoin below the $0.06 mark. Bulls quickly intervened, leading to a price recovery and a close above support. However, the struggle to initiate a substantial rebound indicates waning demand at higher levels. Bears will likely attempt to push the price below the strong support at $0.06 once again, potentially causing the DOGE/USDT pair to decline further towards the next significant support around $0.05.
Meantime, traders brace themselves for the release of US CPI data. The Federal Reserve’s policy decision will definitely add to the market tensions. The outcome of these events is poised to influence the direction of both traditional stock markets and the crypto sphere, with stakeholders closely monitoring the subsequent reactions.
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