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Crypto Market Watch: Bitcoin Holds Above $69,000 Despite Market Sell-Off
Bitcoin saw significant volatility over the weekend, trading below $71,000 following a surprisingly strong May jobs report. Despite the decline, the leading cryptocurrency remains above $69,000, reflecting cautiously optimistic market sentiment. Experts are closely monitoring Bitcoin resistance at $70,600 and support at $67,100.
The unexpected strength of the US job market created 272,000 jobs in May, beating forecasts and boosting investor confidence in potential interest rate cuts by September. Edul Patel, CEO of Mudrex, noted: “This strong job growth has fueled investor and trader optimism regarding potential rate cuts in September.”
Vast market sell-off
Last Friday, the price of Bitcoin fell below $70,000, erasing much of its weekly gains. This decline is part of a broader cryptocurrency market sell-off triggered by the robust jobs report. According to the CoinSwitch Markets Desk, “The report revealed that 272,000 jobs were added in May, significantly exceeding the forecast of 185,000. This strong jobs report, coupled with higher-than-expected wage growth, led to a sell-off in the stock market. futures and a rise in Treasury yields.”
The cryptocurrency market also saw a significant decline in meme coins, with the GME meme coin plummeting 50% from its highs. Roaring Kitty’s YouTube live stream, which failed to deliver any meaningful news, contributed to these losses.
Derivatives and ETF inflows
In the derivatives market, Bitcoin futures positions reached a record high of $37.7 billion. This increase in open interest coincides with a string of net inflows into spot Bitcoin ETFs, now extending out to 18 days. Analysts at 10x Research suggest that Bitcoin could potentially rise 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 the 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.
Shiv investor sentiment.”
Broader market trends
Ethereum has shown slow movement, remaining mostly sideways and underperforming Bitcoin. Currently stuck at a key support level, ETH is expected to recover if market sentiment remains bullish. The CoinDCX research team said: “The bounce from the 20 EMA Daily support further suggests a bullish outlook for Ethereum.”
Rajagopal Menon, vice president of WazirX, reported a 0.75% increase in Bitcoin, reaching $69,724 on June 10. He stated: “Technically, Bitcoin has tested a resistance at $70,000, marking the neckline of an inverse head and shoulders (IH&S) pattern. If this bullish reversal pattern holds, Bitcoin could target $90,000 in July. “
XRP is struggling
XRP fell below the crucial $0.5 mark, indicating continued bearish sentiment. Technical indicators show XRP trading below the 50-, 100-, and 200-day moving averages, signaling persistent downside pressure. The increase in trading volumes highlights significant selling and a lack of buying interest.