Two events are likely to cause extreme volatility in the crypto markets this week. The US CPI (Consumer Price Index) data is set to be realized on Wednesday, and the Federal Reserve will also announce its rate decision that day.
Investors are optimistic that the events will favor the crypto markets, causing them to rally significantly. Despite the optimism, most cryptocurrencies have been in the red over the last 24 hours.
In other news, CoinShares has reported growing investor interest in crypto investment products since the start of this month. The company has said in its latest report that investors injected over $4.3 billion into crypto-related investments last week.
Moreover, CoinShares’ report shows that Bitcoin ETF issuers acquired 25,786 BTC between June 3rd and 7th. This purchase is equivalent to about two months’ worth of Bitcoin mining supply, indicating that demand is surpassing supply.
Will Bitcoin lead other cryptocurrencies to rally on Wednesday after the expected major events, or will we witness a market crash? Well, no one can tell for sure. Now, let’s find out the key resistance levels to monitor if top cryptocurrencies rally tomorrow.
Bitcoin Price Analysis
There has been a lack of buying activity in the past 24 hours, and that’s evidenced by Bitcoin’s current price ($67,103). With the coin now trading below the 20-day Exponential Moving Moving ($68,744), it means that the bears have a slight advantage, which they may use to try and pull Bitcoin toward the 50-day Simple Moving Average of $65,898. A drop below $65,898 could cause Bitcoin to collapse to the $60,093 support level.
On the other hand, if BTC grows above $68,744, the $72,921 resistance will become a key level to monitor. If it collapses, a rally to $80,000 and later to $88,000 could happen.
Ethereum Price Analysis
The critical support at the 20-day Exponential Moving Average of $3,681.34 has failed to hold, causing Ethereum to drop to $3,538. This shows that the sellers have managed to maintain selling pressure. Furthermore, the Relative Strength Index indicator (37.92) suggests that the sellers are advantaged in the short term. That said, a move toward the 50-day Simple Moving Average of $3,369 could occur if the buyers don’t act fast.
On the contrary, if Ethereum’s price grows and stays above $3,681.34, it will be safe to assume that the buyers have started purchasing the dips, and aggressively buying might allow ETH, the second-biggest token by market cap, to head toward the $4,082 resistance level, and even to $4,859.
BNB Price Analysis
The selling pressure applied at $721 on June 6th has caused BNB to slide below the $636.04 breakout level to trade at $611.30 as of this writing. The current price action signals that the bears are in control. If BNB crosses below $600, we anticipate the coin to move toward $563 and later to $535.22.
On the positive side, there is a massive chance that BNB will touch the $723 and $776 resistance levels if the bulls succeed in thrusting and maintaining the coin above $636.04.
Solana Price Analysis
Like BNB, Solana has fallen below a breakout level ($163), indicating that the sellers are looking to regain control. What’s more, SOL has now crossed below the 50-day Simple Moving Average of $156.89 to trade at $155. If the sellers build stronger bearish momentum, we might see Solana plummeting toward the $140.30 support level, where intense buying is expected.
Meanwhile, if the coin breaks over the 20-day Exponential Moving Average of $164.38, it is possible that the bulls could start a rally to the $191 – $205 major resistance zone.
Dogecoin Price Analysis
Dogecoin went below the moving averages on June 10th, signaling that the sellers were getting stronger. The meme coin is changing hands for $0.14063 at press time. If it continues to fall, the $0.12425 support will be key to watch. A break below this level may fuel a correction toward $0.10021.
Conversely, if DOGE goes above the 20-day Exponential Moving Average of $0.1558, the chances of a surge to $0.18 will increase.
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