Cryptocurrency Market Overview
Saturday, June 8, 2024
🔍 Weekly Performance of Bitcoin:
Throughout the week, Bitcoin surged from $67.4K - $67.5K to nearly $72.0K, spending several days above $70.0K. However, last night saw a significant downturn, impacting the overall picture.
Bitcoin fell below $68.5K, reaching a local minimum of $68,420, which was quickly bought up. It has since been trading between $69.1K and $69.6K for over 12 hours.
❓Causes of the Decline:
There are varying opinions on the reasons for this drop.
1. Rise in Bond Yields and Dollar Index
2. GME Shares Decline
🔄 Combination of Factors:
1. Approaching Range Boundary:
- Bitcoin approached the upper boundary of the $66.5K - $72.0K range, where it has been trading since May 20.
2. Resistance at $71.5K - $72.0K:
- The resistance area at $71.5K - $72.0K could not be breached over several days, despite nearly reaching $72.0K yesterday.
3. Rise in Dollar Index:
- There was a significant increase in the dollar index.
💼Market Participant Reactions:
Given these factors, many market participants began taking profits or exiting the market, leading to the drop.
💸Altcoins Impact:
Altcoins suffered more than Bitcoin during the drop. The dominance index briefly exceeded 55% but is now decreasing. This higher impact on altcoins is due to lower trading volumes and a less robust audience. Of the $361 million liquidations during yesterday's drop, a substantial portion was in altcoins.
📆Weekend Expectations:
Over the weekend, Bitcoin is expected to trade within a range of $68.8K - $69.0K at the lower boundary and $69.8K - $70.2K at the upper boundary. Alternatively, it could consolidate above $70.2K.
📈Upcoming Week:
The next week will be turbulent, with important inflation data, the Fed's rate decision and press conference, and significant cryptocurrency market news. Bitcoin might test either $72.0K or $67.0K, and it is possible that both levels could be tested.