This week, two key macroeconomic events could inject some excitement into Bitcoin’s (BTC) market. The Federal Reserve’s press conference post-rate decision and the release of the Consumer Price Index (CPI) data on June 12 could potentially trigger a breakout for Bitcoin from its current tight trading range.
Investors are optimistic about a potential upward breakout, as evidenced by a surge in buying activity last week. The latest CoinShares weekly fund flows report on June 10 revealed that over $2 billion flowed into digital asset investment products, bringing the total inflows over the past five weeks to $4.3 billion.
Bitcoin ETFs acquired 25,729 Bitcoin between June 3 and 7, slightly lower than the previous month’s purchase of 29,592 Bitcoin. This recent acquisition equivalent to around two months’ worth of mining supply signifies a growing demand that surpasses the available supply.
The focus now shifts to whether Bitcoin and other altcoins can overcome their respective overhead resistance levels. Let’s delve into the charts for a closer analysis.
The S&P 500 Index saw a new record high last week, indicating a bullish market sentiment. The upward trend is supported by the 20-day exponential moving average (5,285) and the positive relative strength index (RSI), suggesting a potential rally to 5,500.
The U.S. Dollar Index fell below an ascending channel on June 3 but rebounded back inside the channel on June 7. The buying momentum on June 10 pushed the price above the 50-day simple moving average (105), indicating a short squeeze.
In the world of cryptocurrencies, Bitcoin managed to stay above the 20-day EMA ($68,726) but failed to initiate a strong rebound, hinting at a lack of aggressive buying interest at current levels. Bears may attempt to push the price below the 20-day EMA, potentially leading to a decline towards the 50-day SMA ($65,906).
Ether (ETH) is struggling to find support at the 20-day EMA ($3,676) with the failure to breach $3,730 indicating bearish pressure. A drop below $3,600 could trigger increased selling and push the ETH/USDT pair towards the 50-day SMA ($3,374).
BNB (BNB) faced resistance at $722 and dropped to the breakout level of $635. This level is crucial for determining the next market direction, with bulls and bears likely to battle for control. A bounce off $635 might lead to a rise towards the overhead resistance of $722.
Solana (SOL) dipped below the breakout level of $162, suggesting bearish pressure. Bulls are defending the 50-day SMA ($157) but failing to push the price above the 20-day EMA ($164), increasing the risk of a breakdown to $140.
XRP (XRP) broke below key support levels but saw strong buying interest at lower levels. Bulls may defend the $0.46 support level, with a break above the moving averages signaling a potential range-bound movement between $0.46 and $0.57.
In conclusion, the market remains volatile with several cryptocurrencies facing key resistance levels and potential support areas. Traders should conduct thorough research before making any investment decisions.