Bitcoin experienced significant market volatility following the release of a strong May employment report in the U.S. Despite a dip, the leading cryptocurrency remains above $69,000, with experts closely monitoring its resistance and support levels.
Bitcoin breezes past $71,000 mark: Here are 4 factors fuelling the rise of cryptocurrencies
Bitcoin experienced significant volatility over the weekend, trading below $71,000 after a surprisingly strong May employment report. Despite the dip, the leading cryptocurrency remains above $69,000, reflecting a cautiously optimistic market sentiment. Experts are closely monitoring Bitcoin’s resistance at $70,600 and support at $67,100.
The US job market’s unexpected strength added 272,000 jobs in May, surpassing forecasts and boosting investor confidence in potential interest rate cuts by September. Edul Patel, CEO of Mudrex, observed, “This strong job growth has fueled investor and trader optimism about potential rate cuts in September.”
Broad market selloff
Last Friday, Bitcoin’s price fell below $70,000, erasing most of its weekly gains. This drop was part of a broader crypto market selloff triggered by the robust employment report. According to the CoinSwitch Markets Desk, “The report revealed that 272,000 jobs were added in May, significantly surpassing the forecast of 185,000. This strong jobs report, coupled with higher-than-expected wage growth, led to a sell-off in stock market futures and a surge in Treasury yields.”
The crypto market also saw a significant drop in meme coins, with the GME meme coin plummeting 50 per cent from its highs. Roaring Kitty’s YouTube livestream, which failed to deliver significant news, contributed to these losses.
Derivatives and ETF Inflows
In the derivatives market, Bitcoin futures positions hit a record high of $37.7 billion. This surge in open interest coincides with a streak of net inflows into spot Bitcoin ETFs, now extending to 18 days. Analysts at 10x Research suggest Bitcoin could potentially surge 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 key US macro data announcements. Despite 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 as Bitcoin fell below the $70,000 mark after challenging the $72,000 level on Friday. Stronger-than-expected US jobs data dashed rate cut hopes by the Fed, dampening investor sentiment.”
Broader market trends
Ethereum showed sluggish 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 bounce from the 20 EMA Daily support further suggests a bullish outlook for Ethereum.”
Rajagopal Menon, VP of WazirX, reported a 0.75% surge in Bitcoin, hitting $69,724 on June 10. He stated, “Technically, Bitcoin tested resistance at $70,000, marking the neckline of an inverse-head-and-shoulders (IH&S) pattern. If this bullish reversal pattern holds, Bitcoin may target $90,000 in July.”
XRP struggles
XRP dropped below the crucial $0.5 mark, indicating ongoing bearish sentiment. Technical indicators show XRP trading below the 50-day, 100-day, and 200-day moving averages, signaling persistent downward pressure. Increased trading volumes highlight significant selling and a lack of buying interest.
