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Cryptocurrencies are going through a turbulent period, marked by a significant price drop. Bitcoin and Ethereum, the two main cryptocurrencies, are particularly affected. This decline raises questions about the future of the market and the forces at play. Let's analyze this situation in detail.
Selling pressure: a threat to Bitcoin
Bitcoin, often perceived as a safe haven in the cryptosphere, is not immune to market fluctuations. The crucial support level to watch on the daily chart is $66,205. This threshold coincides with an important resistance line.
A close below this level could intensify selling pressure, leading to a further drop in price.
Instead, the most important resistance level for Bitcoin it is $69,667. Recently, this level has generated strong resistance pressure, preventing the price from rising.
A daily close above this threshold could rekindle hope for an uptrend. However, investors should be cautious as market movements are often unpredictable.
If the flagship cryptocurrency closes below $66,205, the selling pressure could accelerate. This situation could drive the price to new lows, further eroding investor confidence.
Increased market volatility increases risks, making predictions difficult. Therefore, traders should closely monitor these critical levels.
Ethereum: between consolidation and selling pressure
Ethereum, the second largest cryptocurrency, is also under significant pressure. On the daily chart there has been consolidation after the breakout of a triangular pattern.
This consolidation is often a sign of stability, but the current selling pressure has surpassed the key support level.
For the ETH cryptocurrency, the most important support level is $3,502. A daily close below this level could trigger increased selling pressure, negating the recent optimistic gains linked to ETFs. This situation would be worrying for investors hoping for a sustainable rebound.
The key resistance level for this cryptocurrency is the average 9 EMA of $3,689. A daily close above this level could boost the price, paving the way for a recovery. However, the market remains fragile and investors should remain alert to unpredictable fluctuations.
In the coming days, Ethereum's behavior around support and resistance levels will determine its trajectory.
Investors must be prepared to react quickly to market movements to minimize losses and maximize potential profits. Patience and caution are essential in this uncertain period.
Macroeconomic factors: a determining influence
The price fluctuations of Bitcoin and the ETH cryptocurrency cannot be fully understood without examining macroeconomic factors. The global economic situation plays a crucial role in cryptocurrency movements.
Economic reports, such as US employment data, have a significant impact on the cryptocurrency market.
For example, a recent report revealed stronger-than-expected job growth in May, which contributed to Bitcoin's decline. This data influences investors' decisions and trading strategies.
Decisions by central banks, particularly the US Federal Reserve and the European Central Bank, also affect cryptocurrencies. For example, lower interest rates can make risky assets like Bitcoin more attractive. However, uncertainties surrounding future decisions by central banks add a layer of complexity to market analysis.
General investor sentiment also plays a role. Fear, uncertainty and doubt (FUD) can lead to sell-offs, while excessive optimism can lead to impulsive buying.
Investors should remain informed and vigilant, taking a proactive approach to managing risks. Caution is essential in this uncertain outlook. The future of cryptocurrencies remains promising, but the road is full of challenges. Indeed, Liquidation risk remains around 71k.
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Fascinated by bitcoin since 2017, Evariste has continued to research the topic. If his first interest was trading, he is now actively trying to understand all the developments focused on cryptocurrencies. As a publisher, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Do your own research before making any investment decisions.
