Bitcoin
Crypto Market Watch: Bitcoin Holds Above $69,000 Despite Market Selloff
Bitcoin experienced significant volatility over the weekend, trading below $71,000 following a surprisingly strong May employment report. Despite the drop, the top cryptocurrency remains above $69,000, reflecting cautiously optimistic market sentiment. Experts are closely monitoring Bitcoin’s resistance at $70,600 and support at $67,100.
Unexpected strength in the US labor market created 272,000 jobs in May, exceeding forecasts and boosting investor confidence in potential interest rate cuts by September. Edul Patel, CEO of Mudrex, noted: “This strong job growth has fueled optimism among investors and traders about potential rate cuts in September.”
Broad Market Clearance
Last Friday, the price of Bitcoin fell below $70,000, erasing most of its weekly gains. This drop was part of a broader crypto market sell-off triggered by the robust jobs report. According to CoinSwitch Markets Desk, “The report revealed that 272,000 jobs were created in May, significantly exceeding the forecast of 185,000. This strong jobs report, coupled with higher-than-expected wage growth, led to a sell-off in stock futures and a rise in Treasury yields.”
The crypto market also saw a significant drop in meme coins, with meme coin GME plummeting 50% from its highs. Roaring Kitty’s YouTube live stream, which did not provide significant news, contributed to these losses.
Derivatives and ETF Inflows
In the derivatives market, Bitcoin futures positions reached a record high of $37.7 billion. This increase in open interest coincides with a series of net inflows into spot Bitcoin ETFs, which now spans 18 days. Analysts at 10x Research suggest that Bitcoin could potentially rise to $83,000 if it breaks above $72,000, completing an inverted head and shoulders pattern.
The CoinDCX research team also highlighted high volatility this week due to major US macro data announcements. Despite the promising data, a sudden drop on Friday created mixed signals. “Key support levels to consider are around $68,400, $67,000 and $66,000,” they noted. On the upside, resistance levels are at $71,500, $72,350 and $73,500.
Shivam Thakral, CEO of BuyUcoin, added: “The crypto market had a moderately volatile weekend, with Bitcoin falling below the $70,000 mark after challenging the $72,000 level on Friday. Jobs data in the US stronger than expected dashed hopes of a Fed rate cut, dampening investor sentiment.”
Broader market trends
Ethereum showed slow movement, remaining mostly sideways and underperforming Bitcoin. Currently resting at a key support level, ETH is expected to rebound if market sentiment remains bullish. The CoinDCX research team mentioned: “The recovery from the daily EMA 20 support further suggests a bullish outlook for Ethereum.”
Rajagopal Menon, vice president at WazirX, reported a 0.75% increase in Bitcoin, reaching $69,724 on June 10. He stated: “Technically, Bitcoin has tested resistance at $70,000, marking the neckline of an inverse head and shoulders (IH&S) pattern. If this bullish reversal pattern holds, Bitcoin could reach $90,000 in July .”
XRP Struggles
XRP fell below the crucial $0.5 mark, indicating continued bearish sentiment. Technical indicators show XRP trading below the 50-day, 100-day and 200-day moving averages, signaling persistent downward pressure. Rising trading volumes highlight significant selling and lack of buying interest.