elcome to another crypto market outlook for the 16th of June!
In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.
From Bitcoin rejecting the $70,000 round number to Ethereum breaking below the $3,500 support level, and the Fear & Greed Index signaling 'Greed', this article covers it all.
Are you ready?
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
After rejecting the $70,000 round number, BTC dipped by over 3.5%, and ETH followed by dipping over 2%.
This bearish movement in BTC was reflected across the entire crypto market, with almost all altcoins ending the week on a bearish note.
Despite the dip this week, the Fear & Greed Index is still signaling "Greed," indicating that traders are still optimistic and buying the dip.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
The US500 is still bullish, trading within the rising wedge pattern. However, it is currently approaching the upper bound of the wedge pattern and the resistance zone marked in green.
As long as the $5,500 resistance level holds, we anticipate the bears to kick in soon.
As per our previous outlook, the bulls took over in the short-term after breaking above the orange channel.
The bulls will maintain control unless the last low marked in red at $5,365 is broken downward.
We consistently monitor the DXY - USD Index as part of our routine analysis. This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.
As anticipated, DXY has rejected the lower bound of the blue channel and the $104 mark.
As long as the lower blue trendline holds, we anticipate a continuation towards the $106.5 resistance level.
In the 4-hour timeframe, the bulls took over after breaking above the last major high marked in red at $105.2.
As long as the bulls maintain control, a bigger impulse towards the upper bound of the blue channel is anticipated.
As anticipated, Gold rejected the upper bound of the wedge pattern marked in orange and the channel marked in red.
Currently, Gold is hovering around the lower bound of the red channel.
As long as the $2,265 low holds, we anticipate the bears to kick in soon.
In the 4-hour timeframe, Gold has been bearish, trading within the falling channel marked in blue.
For the bulls to take over and shift the momentum, a break above the upper blue trendline and the last major high marked in blue at $2,342 is needed.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
USDT.D is still hovering around the supply zone marked in orange at 4.8%.
For the bulls to maintain control, a break above the 4.8% mark is needed, which would have a negative impact on the crypto market.
In the 4-hour timeframe, the bulls will remain in control unless the last major low marked in red is broken downward.
In such a scenario, a bearish correction towards the support marked in blue would be anticipated.
As anticipated in our previous outlook, BTC rejected the $72,000 resistance and the upper bound of the blue channel, and is currently trading lower.
As long as the bears maintain control, a continuation towards the $62,000 support level is anticipated.
In the 4-hour timeframe, BTC has been bearish, trading within the falling channel marked in blue.
The bears will maintain control unless the upper blue trendline and the last major high at $67,350 are broken upward.
In such a scenario, a bullish reversal towards the $72,000 resistance level would be anticipated.
This past week, ETH broke below the $3,500 support, so we are now anticipating a bearish correction towards the $3,180 demand zone.
In the 4-hour timeframe, ETH has been bearish, trading within the falling channel marked in red.
For the bulls to take over and start the next upward movement leading to $4,000, a break above the last major high marked in red at $3,665 is needed.
Meanwhile, ETH remains overall bearish and can still trade lower.
Quotes / Advices
Crypto trading can be easy due to user-friendly platforms, automated trading bots, and a wealth of online resources and tutorials that simplify the process.
However, it can also be challenging due to market volatility, the need for continuous market analysis, understanding complex technical indicators, and the emotional strain of potential losses.
Balancing these aspects requires knowledge, strategy, and resilience to navigate the crypto trading landscape effectively.
Closing Remarks
In summary, the cryptocurrency market had a mixed week. BTC declined by over 3.5%, and ETH dropped by more than 2%, reflecting a broader bearish sentiment across altcoins. Despite this, the Fear & Greed Index remains in "Greed," indicating trader optimism.
The US500 maintains a cautious outlook as it nears the upper boundary of a rising wedge pattern and key resistance. Bearish momentum is expected if the $5,500 resistance holds.
The DXY Index shows bullish potential, aiming for the $106.5 resistance level. Short-term resistance is expected, but the trend remains upward.
Gold is testing its support levels, currently around the lower bound of its channel. Bearish movements are anticipated if the $2,265 low holds.
The USDT.D analysis shows a critical supply zone at 4.8%. A break above this level would negatively impact the crypto market, though bullish intervention at this zone could stabilize it.
BTC and ETH remain bearish, trading within falling channels. BTC needs to break above $67,350 for a bullish reversal, while ETH requires a break above $3,665 to shift momentum. Until then, both are expected to test their respective support levels.
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