The king of cryptocurrencies, Bitcoin, continues to hold above $30,000 today. Ethereum (ETH) is also maintaining its position above $1,900. However, doubts have arisen among investors due to the short-lived excitement following XRP’s victory and the lack of upward movement in prices despite ETF applications. So, what are the current critical levels? Why is investor risk appetite weak?
Bitcoin (BTC) Technical Analysis
At the time of writing, the king of cryptocurrencies finds buyers at the $30,300 level. Although the $30,000 level was tested in the early hours of the morning, the bulls successfully defended this area. However, the critical level of $30,400 has not been regained. The cumulative market cap of cryptocurrencies continues to stay below $25 billion. Bitcoin’s market dominance stands at 48.5%.
The rally that started with the BlackRock ETF application on June 15 led to a price increase up to $31,800. However, for almost a month now, the price has been fluctuating between $31,400 and $29,600. We have seen in the recent past that such consolidations have pushed the price higher. Therefore, it is likely that the price will make higher highs on closes above $31,400. However, time is running out for determining the direction of the price. If the price turns around for the fourth time after three bounces from the bottom, it will likely start running in the expected direction.
If the $29,500 level cannot be maintained, the $28,600 and $26,800 regions could be visited. On the other hand, the targets of $34,000 and $40,000 remain valid in the opposite scenario. The Federal Reserve’s interest rate decision at the end of the month will largely shape the rest of the year for crypto investors on a macro level. If an interest rate ceiling is announced, it will provide a good opportunity for an upward movement. However, if a 25bp increase occurs, the downward targets may be visited as the pricing for the second 25bp increase, which has been mentioned many times, begins.
Ethereum (ETH) Analysis
The king of altcoins, Ethereum, seems indifferent to negative inflation or network growth. While many other altcoins have recovered by over 200% from their lows, ETH has remained weak. The decreasing supply on exchanges and the increasing demand for staking have not helped the price.
At the time of writing, the price is holding at $1,920. The current level is reasonable for further upward movement, but bulls have not been able to stay strong above the psychological resistance level of $2,000. If the price continues to find demand above this area, a journey towards $2,200 and $2,500 may begin. Otherwise, if the levels of $1,900 and $1,870 are lost, the price may fall below $1,800 again.
