Weekly market recap (from May 31st to Jun 6th)
The debt ceiling deal came into effect, which means that the US debt default will not happen, but the U.S. Department of the Treasury will issue new treasury bonds, which will increase the TGA account and reduce market funds in disguise. The U.S. stocks and crypto powered by $USD will be affected. On the good side, despite the NFP released last Friday was strong, the signing of the deal confirms that the Fed will not need to raise interest rates. If CPI data does not surprise, then the June FOMC will not raise interest rates.
The news that SEC sued Binance and CZ hit the market. Although BTC and ETH have not been confirmed to reverse at a large level, the price of ALTS has dropped significantly. FUD increases. It is difficult for bulls to gather again.
BTC
Prior to Monday, the price fell, but remained above 27000, and the trading volume was basically the same as the previous week. Bulls and bears are close and fluctuation is the main trend. While Monday’s drop was not technically driven, such a significant drop and huge trading volume hit the bulls. Now price is below the given support level, with bears taking control at the daily level. At present, 26000 has still not been effectively broken down. The price may rebound.
Conclusion: Mostly fluctuation. The bullish trend on a large scale is affected. If the price cannot get back above 26000 in these few days, then the power of bears is confirmed. The trend of BTC will change from bullish to bearish. We lowered the resistance level to 28000 and lowered the support level to 25000.
ETH
ETH performed better than BTC last week. The price was fluctuating around 1900. There was no danger to the given support level. After Monday’s dump, the price still remained above 1800. Although it did not rise after a pullback as we thought, the bulls is always ahead. But after Monday, we need to revisit the current situation. The strength if bears is increasing rapidly, and it is difficult to form a new rise.
Conclusion: Mostly fluctuation. The price is back where it was before, the strength of bulls and bears is close, and the market sentiment is FUD. So we give this conclusion. The price is likely to enter a long-term range again. We lower the resistance level to 2000 and maintain last week’s support level at 1750.
SOL
Early last week, the price was slowly rising above the given support level. While volatility is modest, the bulls are ahead of the bears. But on Monday, a long red candle appeared. The price fell and retested the given support level while giving back last week’s gains. The trading volume of the dump this time is more obvious than before. This could be the starting point for a decline
Conclusion: There is a high probability that the decline has not ended. The bulls did not increase significantly last week, and the long red candle was destructive. SOL only maintains shocks at a larger level previously, so we give different conclusions from BTC’s and ETH’s. We maintain last week’s given resistance at 26 and lowered the support level to 17.
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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