Bitcoin Weekly Review June
During the trading week from May 30 to June 5, the bitcoin exchange rate was trading in the range of $29,300 - $32,400. On Sunday, buyers pulled the price into the positive area.
The week started with a good 7.69% gain to $31,734. In the States, there was a day off on the occasion of a national holiday. The stock market was closed, so buyers used rising S&P500 and Nasdaq futures as a direction guide. After the breakdown of the intraday resistance of $30,700, the price rose to $32,399.
On Wednesday, Bitcoin lost all profits. The trigger for the sale of cryptocurrencies was the fall of the S&P500 and Nasdaq indices, as well as the strengthening of the dollar in the Forex market. Bitcoin sales intensified after the breakdown of $31,200.
The US dollar has risen in price against major currencies against the backdrop of rising yields on 10-year US government bonds. Investors have again begun to consider the scenario of an aggressive rate hike by the US Federal Reserve by 75 bp for June. When there is no other news on the market, I work out the ones that are.
The Fed released its Beige Book for June, which reflects continued growth in all counties. Most of them noted a small or moderate increase. US manufacturing activity rose faster than expected in May as demand for goods remained strong, easing fears of a looming recession.
By the end of the week, negative sentiment on risky assets persisted. The S&P500 and Nasdaq returned to Monday's levels. The BTC/USDt pair returned below the $30,000 mark, leaving a long tail above. A bearish signal is forming on the weekly time frame. To cancel it, you need to close the week above $31,000.
The US dollar rose against a basket of currencies on Friday after the US employment report came in better than expected. The situation on the labor market is one of the key factors influencing the decisions of the Fed in terms of monetary policy. With high inflation and a good NFP report, the Fed will continue to raise rates.
What to expect then from cryptocurrencies?
The bitcoin situation remains tense. Due to the fact that at the beginning of the week, buyers updated the high of May 15, 2022, and the price returned to the level of $30,000, a bearish model is forming on the market.
It failed to gain a foothold above $31,700. If over the weekend, buyers fail to protect the $29,000 level and return the price to the $31,000 area, then you should prepare for updating multi-month lows. It is enough for sellers to hook stops on longs below 28 thousand, and a new sale of the crypt and liquidity triggering on futures for coins will begin. Targets for bears are in the region of $20,000-23,000 thousand.
Cycle analysis still points to an emerging growth phase from May 30 to June 6. The crypto market cannot get rid of stock indices, so they will remain a compass for crypto investors during the summer months. The dynamics of the S&P500 and Nasdaq, as well as US macro statistics will continue to have a strong impact on the crypto market. It remains to wait for the opening of the Asian session and look at the dynamics of futures for stock indices. There were no surprises over the weekend, they should open calmly.
