Weekly market recap (from May.28th to Jun.3rd)
The volatility brought about by the approval of the ETH ETF gradually narrows. U.S. employment data, CPI for May and FOMC will be released in the next two weeks. This will affect market expectations for monetary policy. Starting from April’s data, both employment and CPI began to cool down. Although the Federal Reserve said that an interest rate cut is far away, but we all know that it is approaching.
The United States has entered the election cycle, perhaps this is also the main reason for the approval of the ETH ETF. More and more candidates showing themselves to be crypto-friendly and looking to gain support from Cryptoer. Similarly, we believe that the Federal Reserve also needs to submit a satisfactory answer to the public to ensure the voting rate of the Democratic Party during its term. Therefore, we believe that interest rate cuts will still wait until Q3~Q4, but the market will be more aggressive in pricing interest rate cuts.
BTC
Therefore, BTC fluctuated around 69000 when no important events occurred in the market, which is the same as our recap judgment last week. The market sentiment is mainly cautious, at least waiting for new updates. This can also be seen in the lower-than-past-average trading volume. Indicators-wise, the past seven days have been relatively uneventful. There is no blue column representing whales on the WTA indicator. The ME indicator continues to maintain a bullish trend, and the change in the wavy area is not obvious.
To sum up, we believe that BTC may continue to fluctuate around 69000 for most of the time this week. We maintain our original resistance level of 74000 and support level of 61000.
ETH
In the past 7 days, ETH volatility has decreased and remained fluctuating at high levels. ETH/BTC has not returned to the level where the BTC ETF passed, which shows that ETH is still slightly undervalued in terms of the benefits brought by the ETF. Both bulls and bears are cautious, with trading volume declining after returning to highs. Judging from the WTA indicator, the blue column representing the whale has disappeared. The ME indicator has restarted the bullish trend after the pump.
To sum up, we believe that ETH will continue to remain volatile most of the time this week, and the rise is likely to be greater than the fall. We maintain my original resistance level of 4000 and support level of 2800.
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 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.
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