elcome to another crypto market outlook for the 3rd 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 trading within a narrow range in the shape of a symmetrical triangle to Ethereum hovering around the lower bound of the channel, and the Fear & Greed Index signaling 'Greed' for the entire week, 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.
The crypto market has been uneventful this week as BTC has been hovering within a narrow range. BTC dipped by -1.85%, and ETH followed suit, closing the week negatively.
This bearish movement in BTC was reflected across the entire crypto market, with almost all altcoins ending the week on a bearish note.
The Fear & Greed Index is still signaling "Greed," indicating that traders remain optimistic following the ETH spot ETF approval.
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 hovering around the upper bound of the wedge pattern and the resistance zone marked in green.
As long as the resistance level at $5,500 holds, we anticipate a bearish move.
As per our previous outlook, the bears took over after breaking below the last major low marked in red at $5,240.
The bears will maintain control as long as the US500 is trading within the falling channel marked in orange.
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.
The DXY is still overall bullish and hovering around the lower boundary of the blue channel and the $104 demand zone.
Therefore, as long as the $104 level holds, we expect a bullish continuation towards the $106.5 resistance level.
In the 1-hour timeframe, DXY has been bearish in the short-term, trading within the falling channel marked in orange.
For the bulls to regain control and start the upward impulse movement, a break above the upper orange trendline and the last major high at $104.75 is needed.
Gold has maintained an overall bullish trend from a medium-term perspective, trading within the rising flat channel marked in red.
Currently, Gold is retesting the lower bound of the channel, so we expect the bulls to kick in soon, as long as the last low marked in red at $2,265 holds.
In the 4-hour timeframe, for the bulls to take over and start the next upward impulse movement, a break above the last major high marked in green at $2,365 is needed.
Meanwhile, Gold can still trade lower to test the lower bound of the daily channel before moving higher.
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 overall bearish, however, it is approaching a strong support and demand zone around 4.25%.
As long as this support holds, we expect the bulls to kick in soon, which would be negative for the crypto market.
In the 4-hour timeframe, USDT.D has been overall bearish trading within the falling channel marked in green.
To regain control, the bulls need a break above the last major, high marked in orange, at 4.64%.
Meanwhile, USDT.D would remain bearish and could still test the 4.24% demand zone.
As anticipated in our previous outlook, BTC rejected the $72,000 resistance level and is currently trading within the falling flat channel marked in blue.
For the bulls to maintain control from a long-term perspective, a break above the upper blue trendline and the $74,000 mark is needed.
This week, BTC has been hovering within a range forming a symmetrical triangle.
The bulls will maintain control unless the last major low marked in orange at $66,400 is broken downward.
For the bulls to take full control and start the next upward impulse movement, a break above the upper red trendline is needed.
ETH has been relatively uneventful this week, hovering within the range between our $3,500 support and $4,100 resistance levels.
For the bulls to take over from a long-term perspective, a break above the $4,100 mark is needed.
In the 4-hour timeframe, ETH has been bullish, trading within the flat rising 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 $3,840 is needed.
Meanwhile, as it approaches the $3,500 - $3,600 support zone again, we will be looking for new short-term buy setups.
Quotes / Advices
To keep your crypto safe, use a hardware wallet for offline storage, enable two-factor authentication, and create strong, unique passwords.
Avoid sharing your private keys and be cautious with phishing attempts.
Regularly update your software and stay informed about security threats.
Use trusted exchanges and wallets, and consider diversifying storage methods to minimize risks.
And most importantly, always backup your recovery phrases in secure locations.
Closing Remarks
In summary, the cryptocurrency market experienced a bearish week, with BTC declining by -1.85% and ETH closing negatively, reflecting a broader bearish sentiment across altcoins.
The US500 maintains a cautious outlook as it hovers around the upper wedge boundary and key resistance zone.
The DXY Index shows overall bullish potential, though it faces short-term bearish trends, while Gold continues its medium-term bullish trend, retesting lower channel bounds.
The USDT.D analysis indicates a bearish trend, yet approaching demand zones suggest potential bullish intervention, which could negatively impact the crypto market.
BTC is trading within a falling flat channel and needs to break above $74,000 for a long-term bullish shift. Similarly, ETH remains within its support and resistance range of $3,500 to $4,100, seeking short-term buy setups as it nears the support zone.
