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Wed 12 Jun 2024 4 min of reading by Evans S.

Cryptocurrencies are going through a tumultuous period, marked by a significant drop in prices. Bitcoin and Ethereum, the two main cryptos, are particularly affected. This decline raises questions about the future of the market and the forces at play. Lets analyze this situation in detail.

Bitcoin, often perceived as a safe haven in the crypto sphere, is not immune to market fluctuations. The crucial support level to watch on the daily chart is $66,205. This threshold coincides with a major resistance line.

A close below this level could intensify selling pressure, leading to a further drop in price.

Conversely, the most important resistance level for Bitcoin is $69,667. Recently, this level has generated strong resistance pressure, preventing the price from rising.

A daily close above this threshold could rekindle the hope of an uptrend. However, investors need to stay cautious, as market movements are often unpredictable.

If the flagship crypto closes below $66,205, selling pressure could accelerate. This situation could push the price to new lows, further eroding investor confidence.

Increased market volatility heightens risks, making predictions difficult. Traders should therefore closely monitor these critical levels.

Ethereum, the second largest crypto, is also under significant pressure. On the daily chart, a consolidation has emerged after breaking out of a triangle pattern.

This consolidation is often a sign of stability, but the current selling pressure has broken the key support level.

For the ETH crypto, the most important support level is $3,502. A daily close below this level could trigger an increase in selling pressure, nullifying recent optimistic gains linked to ETFs. This situation would be concerning for investors who hoped for a sustainable rebound.

The key resistance level for this crypto is the 9 EMA average of $3,689. A daily close above this level could give a boost to the price, paving the way for a recovery. However, the market remains fragile, and investors need to stay vigilant against unpredictable fluctuations.

In the coming days, Ethereums behavior around support and resistance levels will determine its trajectory.

Investors need to be ready to react quickly to market moves to minimize losses and maximize potential gains. Patience and caution are essential in this uncertain period.

The price fluctuations of Bitcoin and the ETH crypto cannot be fully understood without examining macroeconomic factors. The global economic situation plays a crucial role in cryptocurrency movements.

Economic reports, such as employment data in the United States, have a significant impact on the cryptocurrency market.

For example, a recent report revealed stronger-than-expected job growth in May, contributing to Bitcoins decline. This data influences investors decisions and trading strategies.

Decisions by central banks, notably the U.S. Federal Reserve and the European Central Bank, also affect cryptocurrencies. For example, lower interest rates can make risky assets like Bitcoin more attractive. However, uncertainties around future central bank decisions add a layer of complexity to market analysis.

Overall investor sentiment also plays a role. Fear, uncertainty, and doubt (FUD) can lead to massive sell-offs, while excessive optimism can lead to impulsive buying.

Investors need to stay informed and vigilant, adopting a proactive approach to managing risks. Caution is essential in this uncertain landscape. The future of cryptos remains promising, but the road is fraught with challenges. Indeed, the risk of liquidation persists around 71k.

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Fascin par le bitcoin depuis 2017, Evariste n'a cess de se documenter sur le sujet. Si son premier intrt s'est port sur le trading, il essaie dsormais activement dapprhender toutes les avances centres sur les cryptomonnaies. En tant que rdacteur, il aspire fournir en permanence un travail de haute qualit qui reflte l'tat du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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Crypto: Market crash. Bitcoin and Ethereum waver - Cointribune EN