elcome to another crypto market outlook for the 9th 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 hovering around the upper bound of a channel to Ethereum approaching a massive support zone, 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 still managed to close the week slightly bullish with a +0.06% gain, while ETH ended the week bearish with a -2.95% decline.
This bearish movement in ETH was reflected across the entire crypto market, with almost all altcoins ending the week on a bearish note.
Despite the dip at the end of the 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 hovering around the upper bound of the wedge pattern and the resistance zone marked in green.
As long as the $5,375 - $5,500 resistance zone 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 $5,310 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 $104 level holds, we expect a bullish continuation towards the $106.5 resistance level.
In the 4-hour timeframe, DXY has been hovering within a narrow range between $104 and $105.2.
For the bulls to start the next upward impulse movement, a break above the last major high marked in red at $105.2 is needed.
Gold is still hovering around the upper bound of the wedge pattern and the round number at $2,500 marked in green.
As long as the $2,500 mark holds, we anticipate the bears to kick in soon.
In the 4-hour timeframe, Gold has been hovering within a narrow range in the shape of a flat rising channel marked in red.
The bulls will remain in control unless the last major low at $2,265 is broken downward.
In such a scenario, a bearish correction towards the demand zone and lower blue trendline would be expected.
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 currently rejecting the demand zone around 4.25%.
As long as this demand zone holds, we expect the bulls to kick in soon, which would have a negative impact on the crypto market.
In the 4-hour timeframe, USDT.D surged in a parabolic manner at the end of this week. However, it is still overall bearish from a medium-term perspective.
For the bulls to gain control, a break above the last major high marked in orange at 4.64% is needed.
BTC is still hovering around the upper bound of the blue channel and the $72,000 - $74,000 resistance zone.
For the bulls to take over from a long-term perspective and push towards the $80,000 mark, a break above the $74,000 resistance level is needed.
The bulls will maintain control unless the last major low marked in red at $68,500 is broken downward.
In such a scenario, a bearish correction towards the $62,000 support level would be expected.
ETH has been uneventful this week, hovering within the range between our $3,500 support and $4,100 resistance levels.
Currently, it is approaching the $3,500 - $3,600 support zone, so we expect the bulls to kick in soon.
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 $3,745 is needed.
In parallel, if the $3,500 support level is broken downward, a bearish correction towards the $3,000 round number would be anticipated.
Quotes / Advices
To catch the next 10x in crypto, focus on emerging trends like AI, GameFi, and DeFi.
Research promising projects with innovative technology, strong teams, and real-world use cases.
Monitor market sentiment and follow influential figures for insights.
Diversify your investments to manage risk, and stay updated with news and developments.
Timing is crucial, so enter early and be prepared to hold through volatility.
Closing Remarks
In summary, the cryptocurrency market experienced a mixed week. BTC managed a slight gain of +0.06%, while ETH declined by -2.95%, 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, facing short-term resistance but aiming for a continuation towards $106.5.
Gold continues to test its resistance around $2,500, with potential bearish movements anticipated if this level holds.
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 narrow range 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.
