Weekly market recap(from June 1st to June 7th)
Global chaos continues. Last week we saw the EU pass the sixth round of sanctions against Russia, including energy-related restrictions. Even though the Eurozone experienced high inflation above 8% last month (mainly due to energy), the EU has opted for tougher sanctions rather than easing relations with Russia to reduce energy pressures. At the same time, we have seen Russia’s strong opposition to U.S. aid of medium-range missiles to Ukraine and its fiery rhetoric attacking the core of decision-making. The war has not cooled down. On the other side of the world, India, the second-largest wheat exporter, is affected by high temperature, and now is restricting the wheat exports, which will also exacerbate the tension in the global food supply.
Last week, cryptocurrencies basically remained volatile. There was no continuity for both bears and bulls. The price has returned to its original level.
It remained to fluctuate last week. Although many candles are long and accompanied by a certain volume, there is still no continuity. One day you are happy or angry about the floating profit and loss, but the next day the number is back to 0. Unlike in the past, this week’s bulls are not as weak as they were in previous weeks. The price retesting our given support level (29000) also confirms this point of view. Likewise, the bear is always strong and the uncertainty of the trend increases.
Conclusion: Mostly fluctuation. We come to this conclusion because of the strength of the current balance between long and short. The given support level (29000) was tested many times last week, and the firmness will be reduced. By the time we published this recap, the decline has exceeded the range of yesterday’s rise, so we reasonably lowered the support level to 29000 to guarantee validity this week. We lower the resistance to 31300.
Prices were squeezed out of the range again after briefly returning to the yellow range last week. The pressure brought by the lower rail of the bearish channel is continuous, and whether the rise on May.30 or Jun.6 was stopped when it reach the lower rail. So compared to BTC, ETH did not perform well in the last week. In terms of details, the bulls have strengthened. Unlike it in May, the number of long-green candles has increased, and both are accompanied by large-scale trading volume in the last week.
Conclusion: Mostly fluctuation. The price is approaching lows(1700) again, but the build-up of bullish power recently makes us think the previous lows have more supportive power. Between the lower rail and the previous low, it will fluctuate. This week, we lowered the support level to the previous low (1700) and the resistance level to (2000), and in the short term, there will still be resistance near the lower rail of the bearish channel.
SOL broke the low of May.12 last week. Although the price rebounded after that, judging from the performance of bulls last week, it is not as strong as BTC’s and ETH’s. Even though there was a large-scale volume on Jun.6, the candle did not recover the magnitude of the decline on Jun.1. The long upper shadow and the destructiveness of the bears today have to make us wonder if the SOL has escaped the decline.
Conclusion: Mostly fluctuation, and there is a certain possibility of falling. We lowered the support level to 33. This level corresponds to the price in August last year. Unlike the subsequent high-slope rise, we believe that this price level has accumulated a certain amount of buyers and will play a supporting role. This is why we believe that there is mostly fluctuation. Based on the bulls performed last week, we left the possibility of falling. This week’s resistance level was lowered to 48.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.