Last week, the cryptocurrency market saw a decent rise of 2.45% from a Market cap of $1.102 trillion to $1.129 trillion. After weeks of downward pressure and pullbacks, BTC finally started showing some strength along with ETH. The looming issue of the debt ceiling crisis finally saw some positive developments as the bill reached the Senate. Still, it needs to be cleared from there and sent to President Joe Biden for final clearance and to be instilled in law. Apart from this, strong earnings and projections from tech companies have led to Nasdaq performing just next to ETH in percentage terms.
Price Analysis:
Bulls made an important move when the bears were unable to push the price below the immediate support level of $25,750. They forced Bitcoin back into the $27,812 region of resistance, but higher levels >$28,000 are luring sellers. At the resistance line at $27,812, the bears are seeking to halt the upswing. The chances of a break over the resistance line will increase if the bulls prevent the price from falling below the $27,000 price level. The BTC/USDT pair may increase to $29,500 if that occurs.
Despite the fact that the short-term outlook is favorable, traders should not let their guard down. The price often increases on rumors and decreases on the news. The bears may be selling during rallies if the $26,500 barrier loses way. The pair may then crash to the crucial support range between $25,750 and $25,719 at that point.
Fundamental Updates
The Core PCE m/m released last week marked it at 0.4% instead of the forecasted 0.3%. This data finally seemed to be cooling down but took a sudden reversal last week. This has been a crucial challenge for the markets as this is one of the more important metrics that the Fed takes into consideration for its policy decisions.
June 1 will mark the next ADP Non-Farm Employment change, which is expected to be 173K. This data has alternatively been more or less than the forecasted figure, so a clear trajectory isn’t visible here.
With the US Debt ceiling crisis nearing its resolution, a good uptick was seen in the markets this week. This had been a grave and long-standing issue hence the resolution was of immense importance. Along with this, Hong Kong will finally open its door for retail traders and distribute licenses to Virtual Asset Service providers, thus bringing in a substantial number of users to the space. With no major data print apart from the ISM manufacturing and services PMIs releasing in the upcoming week, the new user inflow should increase the overall market strength. A positive move to the upside should be expected.
Bitcoin returns were 1.46% for this week. The Alpha Blue Chip Focused Strategy returns were 0.22% during the same period (25 MAY – 1 JUN). The Top Cap Digital Assets Strategy and Arbitrage Opportunities and Balanced Strategy returns were 0.86% and 0.08%, respectively.
