Weekly market recap(from June 8th to June 14th)
Last week, we observed the movement of BTC and NDX during the same period. It is not difficult to find that on almost every trading day, BTC’s high point and closing price are higher. The bulls of BTC performed better than that of NDX. This is not seen in previous weeks. We believe this information matter something. But US CPI(8.6%) dealt a big blow to bulls’ confidence, triggering a new decline. And the stETH event exacerbated the panic over the weekend. Wounds that haven’t healed were wounded again.
The FOMC will be held this week, and the market’s expectations for a rate hike changed from +50bp to +75bp after the US stock market opened yesterday. The Fed’s final rate hike decision, as well as market concerns about the Fed’s ability to handle the inflation, will determine the trend of the week.
Back to our TA. BTC dumped in the last week. After the CPI announcement on Friday, the price reached our given support level and dragged by ETH, fell sharply. Let’s go back to Dec. 2020, or switch to a weekly view. After breaking down the given support level, it is almost difficult to find any other strong support level. That’s why it dropped by 20% over the weekend, and will also face this situation in the following period of time.
Conclusion: Mostly falling. Almost every candle this week has no lower shadow. There is no special point in the details. The current price has dropped to 20800 and then rebounded. This level is in the correction range in Dec. 2020. This support is not strong, and it should be broken within this week. We lower the resistance to 26500. We tried to find close strong support within 1 year, but it was difficult, and eventually, we lowered support to 17800. For the ultra-short-term judgment, we set an additional subprime support level of 21700, but it is really weak.
Affected by the butterfly effect, ETH has been dumped as the leader of Defi tokens. It fell almost 35% last week. This magnitude is the same as that of the LUNA event decline. It can be seen how easily the bulls can be disintegrated. In detail, after the CPI was announced on Friday, the price broke the given support level, and the downward slope became steeper over the weekend.
Conclusion: Mostly falling. The bearish trend is obvious after last week’s decline. The same as BTC, although the price has recovered somewhat today, this price is not a strong support level at present, and it is likely to be broken down and fall again in the next few days. We move the support level to 1050, which is the low of the Jan. 2021 correction range. And lowered the resistance to 1430.
Also affected by the Defi market, the price of SOL fell by nearly 30% in the last week. Looking at the details, after the CPI announcement, the price actually didn’t break its previous low. And a green candle line appeared last week. This information proves that SOL’s bulls are stronger than ETH’s. The magnitude of a rebound today is also as good as that of BTC and ETH, almost recovering yesterday’s losses.
Conclusion: Mostly fluctuation, and there is a certain possibility of falling. We believe that there is a high probability of fluctuation because SOL has entered the correction range from Apr. 2021 to Aug. 2021, and there are so many transactions here, which will support the price. So we set the support level to 22, which is the lower rail of the correction range and has strong supportive power. We lower the resistance to 40.
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.