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The market is shaking out weak hands. 🥴 This is how it might feel for most Bitcoin and Ethereum investors right now. Why are cryptocurrencies falling, and when will the rally finally resume? 📉🔜📈
The current cryptocurrency market is sluggish. 😓 But Bitcoin and Ethereum investors shouldn't be fooled now. Two simple reasons are currently causing a sell-off. 🏃♂️💨 Here's when it might end and when the rally could continue:
🧐 The secret lies in this TradingView chart. It shows the Euro-Dollar exchange rate. How many dollars do you get when you exchange one euro? Why is this important? Anyone familiar with cryptocurrencies knows that big Bitcoin rallies only happened when the Euro gained against the Dollar. 💹 A rally is never possible when the Dollar strengthens. This is also evident in the chart. The last Bitcoin rally can be seen in the chart when the Euro-Dollar rate increased significantly from September 2023. 📈 Small movements can always happen, but a proper rally can only occur if the Dollar weakens. Since the US Dollar recently strengthened, Bitcoin and Ethereum have fallen. 😩
🌟 The good news: As seen in the chart, the Euro-Dollar rate has now reached the blue support line. Sure, the rate could break downward, causing cryptocurrencies to fall further. But it's more likely that the rate will turn upwards since the support line holds. If it breaks out of the blue triangle, the next cryptocurrency rally will be triggered. 🚀 And this is due to another simple reason:
Then the Rally Continues for Bitcoin and Ethereum 📈💪
The second fundamental reason for crypto weakness is: There’s currently no narrative. 🥱 The Bitcoin ETF and then the Bitcoin halving provided a nice story. But after that, the hype faded and investors took profits. While there was a small surge due to the approval of the Ethereum ETF, the fact that these Ethereum ETFs are still not tradable deflated the crypto sector again. But now there are exciting updates: 🔥
According to Eric Balchunas from Bloomberg, the financial news agency expects the trading of Ethereum ETFs to start on July 2nd. 🗓️ Expert Balchunas tweeted: "We are moving our over/under date for the launch of the spot Ether ETF to July 2nd, after hearing today that staff sent comments to the issuers on their S-1 filings, and they were pretty minor, nothing major, and asked for them back in a week. Good chance they are working to declare them effective next week to get them off their plate before the holiday week. All possible, but that's our best guess at this point." 📅
This means: In about two weeks, the Ethereum ETFs could be tradable. This aligns perfectly with the Euro-Dollar triangle above, which could break upwards in the next two weeks. 🤝 If these two events coincide, it could be the next perfect storm for Bitcoin and Ethereum, and the next rally could be just around the corner. 🌩️ Investors in cryptocurrencies must still closely monitor the situation. 👀