The recent actions of the Gary Gensler-led US Securities and Exchange Commission (SEC) against the two largest crypto exchanges, Binance and Coinbase, have put the Bitcoin price at an inflection point. Traders expect both Bitcoin and Ethereum (ETH) to continue sideways movement for a week at least, despite obstacles such as the looming CPI, PPI, and US Fed Interest Rate Decision next week. Yet, the overall outlook for Bitcoin remains bullish for the summer.
On the weekly timeframe, Bitcoin’s price is bouncing off the weekly 200-EMA, with the diagonal resistance and horizontal support forming a triangle. As the Bitcoin price moves closer to the apex, a bullish breakout is anticipated. This suggests that mostly sideways movement will occur in the coming weeks, with bullish action likely to start in July or early August.
On the daily timeframe, Bitcoin’s price is retesting the bottom of the cloud, with an expected bounce from the daily 200EMA. Until then, market activities and macro factors will heavily influence the price action. However, it is unlikely that Bitcoin’s price will cross $30,000 before August.
Whales are beginning to buy the dip following the Binance and Coinbase lawsuits. Popular analyst Credible Crypto predicts that if Bitcoin reclaims $27.5k, we will continue toward new all-time highs.
Moving into the week, Bitcoin and Ethereum prices will remain under pressure as the US Treasury Department is expected to issue $1 trillion in treasury bills by the end of the third quarter. This drain of US dollar liquidity will affect stock markets more than the crypto market.
In addition, the CPI, PPI, and US Fed Interest Rate Decision on June 13 and 14 will provide traders with valuable insight into how the markets may react in the weeks to come. The US Federal Reserve is expected to “skip” a rate hike in June. The CME FedWatch Tool reveals a 70% probability of the Fed leaving its policy rate unchanged.
Meanwhile, an interesting development has occurred, as a dormant wallet transferred 1,432.93 BTCs, worth $37.8 million, to a new address after more than 10 years of inactivity.
In the past 24 hours, BTC’s price has fallen by 2%, currently trading at $26,410. ETH’s price stands at $1,839, with a 24-hour low and high of $1,822 and $1,874, respectively.
As the market faces various challenges and uncertainties, it is important for crypto enthusiasts to perform their market research before investing in cryptocurrencies. The author and publication do not hold any responsibility for personal financial loss.
Source: Coingape
