Two key economic events have the potential to shake up Bitcoin’s volatility in the coming week. The Federal Reserve’s press conference post-rate decision and the release of the Consumer Price Index (CPI) data on June 12 could be the catalysts that propel Bitcoin out of its current stagnant range.
Investors are optimistic about a possible upward breakout, which could explain the significant buying activity observed last week. A report from CoinShares on June 10 revealed a staggering $2 billion influx into digital asset investment products, bringing the total inflows over the past five weeks to $4.3 billion.
Bitcoin ETFs managed to acquire 25,729 Bitcoin between June 3 and 7, slightly lower than the 29,592 Bitcoin purchased in May. However, this amount purchased in the first week of June equated to approximately two months’ worth of mining supply, highlighting a surge in demand surpassing supply.
The big question now is whether Bitcoin and other altcoins can surpass their respective resistance levels. Let’s delve into the charts to find out.
S&P 500 Index Analysis
Last week, the S&P 500 Index (SPX) hit a record high, signaling bullish control in the market. The upward trend of the 20-day exponential moving average (5,285) and the positive relative strength index (RSI) suggest a path of least resistance to the upside, with a potential rally to 5,500.
However, a swift decline below the moving averages by sellers could lead to long liquidation, potentially pushing the index down to 5,000.
U.S. Dollar Index Analysis
After falling below the ascending channel on June 3, the U.S. Dollar Index (DXY) saw a rebound, propelling the price back inside the channel on June 7. The bulls continued their buying spree on June 10, driving the price above the 50-day simple moving average (105), hinting at a short squeeze.
Buyers aim to push the price to 105.75 and eventually to 106.50, although a sharp downturn below 104 could negate this optimistic view.
Bitcoin Price Analysis
Despite managing to keep Bitcoin above the 20-day EMA ($68,726), the bulls struggled to initiate a notable rebound. This lack of aggressive buying at current levels may lead to a push by bears to sink the price below the 20-day EMA, potentially dropping the BTC/USDT pair to the 50-day SMA ($65,906).
The critical overhead resistance levels to observe are between $72,000 and $73,777. A successful breakthrough could propel the pair to $80,000 and beyond.
Ether Price Analysis
Ether (ETH) is attempting to find support at the 20-day EMA ($3,676), but the failure to breach $3,730 suggests ongoing bearish pressure. A drop below $3,600 could intensify selling, pushing the ETH/USDT pair down to the 50-day SMA ($3,374).
Conversely, maintaining a price above $3,730 could indicate robust buying support, potentially driving the pair towards $4,094 and $4,868.
In conclusion, the cryptocurrency market remains volatile with various factors influencing price movements. Traders and investors should conduct thorough research before making any financial decisions.