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Cryptocurrencies are going through a tumultuous period characterized by a significant drop in prices. Bitcoin and Ethereum, the two main cryptocurrencies, are particularly affected. This collapse 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
Often considered a safe haven in the cryptosphere, Bitcoin is not immune to market fluctuations. A crucial support level to watch on the daily chart is $66,205. This threshold coincides with the main resistance line.
A close below this level could intensify selling pressure and cause the price to fall further.
Conversely, the most important resistance level for Bitcoin is $69,667. Recently, this level has generated strong resistance pressure, preventing the price from moving higher.
A daily close above this level could revive hopes of an uptrend. However, investors should remain cautious as market movements are often unpredictable.
If the flagship cryptocurrency closes below $66,205, the selling pressure could accelerate. This situation could push the price to new lows, further eroding investor confidence.
Increased market volatility increases risks and makes forecasting more difficult. Traders should therefore monitor these critical levels closely.
Ethereum: Between Consolidation and Selling Pressure
Ethereum, the second largest crypto, is also under considerable pressure. Consolidation appeared on the daily chart after the breakdown of the triangle formation.
This consolidation is often a sign of stability, but the current selling pressure has broken a key support level.
For crypto ETH, the most important support level is $3,502. A daily close below this level could trigger an increase in selling pressure and negate the ETF’s recent bullish gains. This situation would be worrisome for investors who were hoping for a sustained recovery.
The key resistance level for this cryptocurrency is the 9 EMA at $3,689. A daily close above this level could provide momentum to the price and pave the way for a recovery. However, the market remains fragile and investors must remain vigilant in the face of 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 gains. Patience and caution are needed in these uncertain times.
Macroeconomic factors: determining influence
Bitcoin and crypto ETH price fluctuations cannot be fully understood without examining macroeconomic factors. The global economic situation plays a vital role in the movements of cryptocurrencies.
Economic news such as US employment data has a significant impact on the cryptocurrency market.
For example, a recent report found stronger-than-expected job growth in May, contributing to bitcoin’s decline. This data influences investor decisions and trading strategies.
The decisions of central banks, including the Federal Reserve System of the United States of America and the European Central Bank, also affect cryptocurrencies. For example, lower interest rates can make risky assets like Bitcoin more attractive. However, uncertainties about future central bank decisions add complexity to market analysis.
The general sentiment of investors also plays its role. Fear, uncertainty and doubt (FUD) can lead to selling, while over-optimism can lead to impulse buying.
Investors must remain informed and vigilant and must take a proactive approach to risk management. Caution is essential in this uncertain landscape. The future of cryptocurrency remains promising, but the road is strewn with pitfalls. The risk of liquidation really persists around 71 thousand.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.