Market observers will closely watch the United States CPI data and the Fed’s policy decision to provide direction to the stock and crypto market. The all-important United States consumer price index report on June 13 will be followed up by the Federal Reserve’s policy decision on June 14. Both these events could trigger a sharp response from the equities and crypto traders. While a knee-jerk reaction is expected, it will be interesting to note if there is any follow-up to it. Traders may remain cautious as market volatility is likely to pick up over the next few days.
Though the lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase has weakened sentiment, Bitcoin whales are using this opportunity to increase their holdings. Behavior analytics platform Santiment said in a recent report that Bitcoin whales accumulated 57,578 Bitcoin since April 9 even as Bitcoin’s price fell by roughly 10% during the period.
The bulls have managed to sustain Bitcoin above the important support of $25,250 for the past few days, indicating strong buying at the level. Meanwhile, Ethereum price fell from $305 on June 5 to $220 on June 12, a 27% fall within a few days. This indicates that the bears are in firm command.
Cardano, ADA, succumbed to intense selling pressure after breaking down from the ascending channel pattern on June 5. On the other hand, XRP has been a relative outperformer in the past few days as the bulls have managed to sustain the price above the moving averages.
The bears pulled Dogecoin below $0.06 on June 10, but the bulls purchased this drop and the price returned to close above the support. However, the bulls are struggling to start a meaningful pullback, indicating that demand dries up at higher levels. The bears will once again try to sink the price below the strong support at $0.06.
In conclusion, while the crypto market may experience short-term volatility, market observers will need to closely monitor macroeconomic data to determine overall market trends. Key levels of support for major cryptocurrencies must hold for the recovery to start, and traders should remain cautious during times of increased market volatility.
Remember that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: Cointelegraph
