Market Update

Bitcoin, altcoins sell-off on record-high inflation, but traders still expect BTC to consolidate

Global financial markets and crypto sold off after June 10’s 8.6% CPI print showed inflation remains a persistent challenge.

Global financial markets once again find themselves trending lower on June 10 after the Consumer Price Index (CPI) came in at a blistering 8.6% year-over-year increase, the highest print since 1981.

The hotter-than-expected CPI print resulted in a collapse of the $30,000 support and Bitcoin (BTC) price sold off to a daily low of $28,852 before dip buyers managed to bid the price back above $29,000.

*BTC/USDT 1-day chart. Source: TradingView*

Here’s what several analysts in the market are saying about the outlook for Bitcoin moving forward since there appears to be little relief on the inflation front and the Federal Reserve is still determined to raise interest rates.

Dollar strength weighs heavily on risk assets

The effect of the high CPI print on two benchmarks of financial markets, the dollar index (DXY) and the S&P 500 (SPX), was touched on by il Capo of Crypto, who posted the following charts noting that “After CPI results, #DXY continues its pump and #SPX keeps free-falling.”

*DXY 4-hour chart vs. SPX 2-hour chart. Source: Twitter*

Market analyst Kevin Svenson also said that the Fed’s inability to curb inflation is likely to translate to choppy price action for the next year.

With inflation, at 8.6% that means increased rate hikes are likely. $DXY is going parabolic. #BTC and most asset classes are likely going to have to deal with lots of ranging at the lows. Sideways for a year possibly.

Instant recovery is not likely.

— Kevin Svenson (@KevinSvenson_) June 10, 2022

There’s potential for a pullback below $28,000

Should the price of BTC continue to trend lower, crypto trader and pseudonymous Twitter user Altcoin Sherpa says trading below $28,000 is possible.

Altcoin Sherpa said,

“$BTC: EMAs look the best they’ve looked in a while on the 4h but the overall high time frame market structure remains bearish. Not really doing anything active rn, just observing. Seems clear that $28K> is next up if this current area gets lost.

BTC needs to reclaim $30K to prevent further downside

Insight into what it would take to avoid a pullback to the support at $28,000 was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who posted the following chart showing the “unfortunate” retrace from $30,000, the area. The analyst suggested that this “was the moment where we needed to see follow through.”

CrediBULL Crypto said,

“On support, but it’s been tested four times now, so more likely it gives way to $28K. IF we can get back above $30K, then $28K may be avoided.”

The overall cryptocurrency market cap now stands at $1.192 trillion and Bitcoin’s dominance rate is 46.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Traders target $1,400 Ethereum price after ETH drops closer to a critical support level

Ethereum’s Ropsten testnet successfully integrated the merge to become proof-of-stake, but this hasn’t stopped traders from adjusting their downside price targets.

On June 8, the Ethereum network successfully underwent the merge to become proof-of-stake on its Ropsten testnet, but the news had little impact on ETH price.

With the Ropsten upgrade now looking more like a “buy the rumor, sell the news” type of event, most analysts have kept a short-term bearish outlook for Ether price. Let’s take a look.

*ETH/USDT 1-day chart. Source: TradingView*

Can Ether escape the head-and-shoulders pattern?

Pseudonymous Twitter analyst “Cactus” pointed out a bearish head-and-shoulders pattern and questioned whether Ether price would be able to follow the sharp downside that typically follows the completion of the pattern.

Cactus said,

“This is what we are getting excited about? Hard to be bullish any timeframe until we S/R [support/resistance] flip 2K.”

The areas of support to keep an eye on below $1,800 were highlighted in the following chart posted by crypto analyst and pseudonymous Twitter user “il Capo of Crypto,” who ominously noted, “Lower highs all the time and that support has been touched a lot of times already.”

The analyst said,

“Clean break of $1,700 and last leg down would be confirmed, with main target = $1,000.”

The descending triangle pattern also forecasts further downside

A separate, but equally bearish descending triangle chart pattern was highlighted by pseudonymous analyst “Crypto Tony,” who pondered if this is “something too obvious” to ignore.

Based on the lower area of support highlighted on the chart provided by Crypto Tony, a breakdown below the current price could see Ether pullback to the $1,450-to-$1,600 range.

Price momentum turns negative

A more macro view of the general weakness being displayed by Ether was offered by pseudonymous cryptocurrency trader “Cantering Clark,” who said, “If I didn’t think that this time was slightly different, I would look at this $ETH chart and think ‘Big ships turn slowly, and they don’t stop easily.’”

Cantering Clark said,

“By high timeframe measures, this could be the beginning of actual momentum down.”

Bitcoin price recovers $31.5K, but traders say ‘scam’ price action will bring more downside

BTC price rallied back to a strong resistance level at $31,500, but traders caution that another whipsaw is the most likely outcome.

Bitcoin’s (BTC) short-term price action has been dominated by whipsaws that trigger around the $31,000 to $32,000 level and the June 6 reversal at this point triggered a quick sell-off that pushed the price down to $29,200.

Surprisingly, on June 7, the price rapidly reversed course as Bitcoin rallied back to $31,500, but given the current rejection at this level, traders are likely to proceed cautiously, rather than expect a quick surge to $35,000.

Here’s what several analysts are saying about the short-term outlook for BTC and what support levels to keep an eye on moving forward.

A clear redistribution range

The range-bound trading currently impacting Bitcoin was addressed by crypto analyst and pseudonymous Twitter user il Capo of Crypto, who posted the following chart highlighting the “clean range” that BTC has been stuck in for nearly a month.

The analyst said,

“What is happening inside the range and what has happened at the range high, shows that this is [a] clear redistribution range. Clean break of the range low = last leg down confirmed = 21K–23K.”

Ongoing flip-flop price action

A slightly different outcome to the current market chop was suggested by crypto trader and pseudonymous Twitter user Phoenix, who posted the following chart lamenting the month-long range-bound trading for BTC and hinted that it will see more of the same.

Phoenix said,

“On our way towards a whole month inside a mini-range again to fully deploy the flip-flop-your-bias-non-stop-angry-pleb-and-gtfo. *Ppl fomoed the top, lows taken again after the nuke, up we go again?*”

A possible flush out to $20K

For traders trying to get some sense of where the bottom might be, market analyst and pseudonymous Twitter user Rekt Capital posted the following chart highlighting the 200-EMA (exponential moving average) as a key indicator to watch.

According to Rekt Capital, the price history for Bitcoin shows that while it “tends to confirm uptrends when it breaks above the blue 50-week EMA,” on the flip side it “tends to confirm maximum financial opportunity when it reaches and breaks down from the black 200-week EMA.”

A closer look at the recent price action around these indicators was provided in the following chart posted by Rekt Capital to provide a better picture of what support level to look out for.

Rekt Capital said,

“This area is ~confluent with the orange #BTC 200-week MA. In fact, $BTC would need to downside wick below the 200MA to reach the ~$20K area. Interestingly, downside wicking tends to occur below the 200MA to mark out generational bottoms.”

The overall cryptocurrency market cap now stands at $1.24 trillion and Bitcoin’s dominance rate is 46.4%.