Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 23. It should help you with jumping back on track.
Fundamentals and expected events: week 23
Crypto markets: Cryptomarkets are not able to break out of the bear trend. Bitcoin received another blow from both China and Elon Musk, and in response, its price fell back to $ 36,000. Most of the other cryptocurrencies followed and also fell slightly. At the beginning of the new week, investor interest revived and cryptocurrency prices are currently rising, with Ethereum and Polkadot adding around 5% as the top gainers.
Stock and commodity markets: Markets are now waiting for the outcome of the ECB meeting, trading is rather horizontal. Last week, equities around the world weakened, with news of an oncoming economic recession. The London Stock Exchange fell to its lowest level in two years. The Prague Stock Exchange has weakened by more than three percent since the beginning of the week. Gold is now falling slightly, so is oil.
Important events: This week, the Bitcoin 2021 conference continues, an interest rate decision is pending from the ECB, and a meeting of the G7 countries will take place. Furthermore, the US Treasury Secretary did not rule out a possible increase in interest rates by the Fed, which would lead to a further strengthening of investments perceived as protection against inflation, which are now gold and cryptocurrencies. Russia has announced that it will sell off all its assets in US dollars and strengthen its positions in gold and other currencies.
Cryptomarkets and marketcap: week 23
The total crypto market capitalization reached 1,658 trillion USD on June 7th.
Bitcoin’s price is currently 36 090 USD.
Bitcoin’s dominance is currently 40,8%.
Nothing has changed in the past week and we are in the ranging market. There isnt enough conviction on either side of the market to break the 40-42K resistance zone or the 32-34K support. These zones remain major decision points on where the market is going to make the next big move. In general the longer we will be in this range, the bigger the upcoming breakout. It is very important now to stay patient and wait for the breakout, or if you are one of our students use only the strategies that profit in ranging market conditions.
Very similar situation to the BTC, we are still in the range 2200-2000 support and 2700-2800 resistance. What is interesting on the ETH chart this week though is that in the past, the touch of the support or resistance within this range caused a move to the other end of the range, while last week we barely got to the middle of it. This signals to us that the sellers dont have(or dont want to show) enough power to push the price down more significantly, therefore this points to a potential upside breakout.
As BTC is still in the middle of the range, ETH is attacking the top of the range, THETA seems to be already a step ahead and price already broke out of the range, when it rose through the 9$ resistance zone. Currently we are still “sitting” on this resistance turned into support. The 50MA is getting close to the current price and might give buyers the impulse they need to start pushing the price higher. If the 50MA contact wont produce such a move its most likely a fake breakout and we will drop back into the range.