Over the weekend, there was a lot of volatility in Bitcoin, with prices falling below $71,000 following a shockingly positive May employment data. The top cryptocurrency is still above $69,000 despite the decline, indicating a cautiously hopeful attitude among traders. Bitcoin's resistance around $70,600 and support at $67,100 are being watched carefully by experts. The surprising strength of the US labor market resulted in the addition of 272,000 jobs in May, above expectations and increasing investor confidence in possible interest rate reduction by September. "This strong job growth has fueled investor and trader optimism about potential rate cuts in September," said Edul Patel, CEO of Mudrex.
Widespread Selloff in the Market
The majority of Bitcoin's weekly gains were erased last Friday as the price dropped below $70,000. This decline was a part of a larger selloff in cryptocurrencies that was brought on by the positive jobs data. The CoinSwitch Markets Desk reports, "The data showed that 272,000 jobs were added in May, much above the estimate of 185,000. Higher-than-expected wage growth and this positive jobs data caused stock market futures to sell off and Treasury rates to rise." Memes suffered a sharp decline in the cryptocurrency market as well; the GME meme coin fell 50% from its peak. These losses were exacerbated by Roaring Kitty's YouTube broadcast, which failed to produce any noteworthy news.
Inflows into ETFs and Derivatives
Bitcoin futures holdings reached a record high of $37.7 billion in the derivatives market. This increase in open interest is part of an 18-day stretch of net inflows into spot Bitcoin ETFs. According to 10x Research analysts, if Bitcoin breaks over $72,000 and completes an inverted head-and-shoulders pattern, it may rise as high as $83,000.
High volatility this week was also noted by the CoinDCX research team as a result of significant US macrodata announcements. Though the report was encouraging, a sharp decline on Friday sent conflicting messages. "Key support levels to consider are around $68,400, $67,000, and $66,000," they stated. Resistance levels on the upside are around $71,500, $72,350, and $73,500.
"The crypto market had a moderately volatile weekend as Bitcoin fell below the $70,000 mark after challenging the $72,000 level on Friday," stated Shivam Thakral, CEO of BuyUcoin. Investor mood soured after the Fed's prospects of cutting rates were crushed by stronger-than-expected US employment data."
Broader Patterns in the Market
Ethereum moved slowly, largely in a sideways direction, lagging Bitcoin. At a critical support level right now, ETH should rise if market mood is positive. "The bounce from the 20 EMA Daily support further suggests a bullish outlook for Ethereum," the CoinDCX research team said. Vice President of WazirX Rajagopal Menon revealed that Bitcoin has increased by 0.75% to reach $69,724 on June 10. The man said, "Technologically, the neckline of an inverted head and shoulders (IH&S) pattern was tested by Bitcoin at $70,000. In July, Bitcoin may reach $90,000 if this bullish reversal pattern persists."
XRP has Difficulties
XRP fell below the critical $0.5 threshold, a sign of persistent pessimistic sentiment. Technical indicators indicate that there is ongoing negative pressure when XRP trades below the 50-day, 100-day, and 200-day moving averages. Significant selling and a lack of enthusiasm in purchasing are indicated by increased trade volumes.
