Markets
Cryptocurrency market crisis: the reasons behind today’s collapse of Bitcoin, ETH, SOL, XRP and DOGE
The cryptocurrency market suffered a significant downturn today, impacting major assets such as Bitcoin, Ethereum, Solana, XRP, and Dogecoin. Bitcoin (BTC) is trading at $69,371 with a slight gain of 0.03%, while Ethereum (ETH) is trading at $3,683.67, up 0.19%.
Solana (SOL) is priced at $162.6, up 0.13%, while Dogecoin (DOGE) shows a smaller increase of 0.07% to $0.1477. Overall market sentiment has changed dramatically, triggering speculation about the underlying causes of this sell-off.
Notably, these fluctuations coincide with the latest U.S. labor market data, which reported an addition of 272,000 jobs in May, affecting investor confidence and expectations for the Federal Reserve’s interest rate policies.
Cryptocurrency market selloff: causes and prospects
Despite the sell-off, optimism remains in the market, thanks to strong inflows into Bitcoin ETFs. However, the cryptocurrency market saw a sharp decline today, with major coins such as Bitcoin, ETH, BNB, SOL, XRP, and DOGE withdrawing.
The dramatic change in attitude from earlier this week has spurred speculation about the cause of the sell-off. The market expected Bitcoin to hit a new high soon, while altcoins remained bullish.
Reasons behind the recent cryptocurrency sell-off
The positive market sentiment observed at the beginning of the week, characterized by significant increases in cryptocurrency prices, has changed sharply. A major cryptocurrency market sell-off occurred on Friday, coinciding with the release of employment data from the US Department of Labor.
Although the unemployment rate rose to 4% from 3.9% in April, strong nonfarm payrolls statistics weighed on investor confidence.
The solid payrolls report lowered expectations of a potential interest rate cut by the Federal Reserve, raising concerns in the broader financial sector and the cryptocurrency market.
Bitcoin price prediction
Bitcoin is trading at $69,371, reflecting a modest 0.03% gain today. The critical pivot point is at $68,556. Immediate resistance levels are at $69,929, $70,643, and $71,961, with support levels at $67,570, $66,620, and $65,881.
The RSI stands at 35, indicating a neutral market position. The 50-day EMA is positioned at $70,176, which acts as a resistance barrier. Bitcoin’s uptrend is intact as long as it remains above the $68,556 pivot point.
Failure to maintain this level could result in significant selling pressure, pushing prices towards support zones.
Etheruem Price Prediction
Ethereum it is currently trading at $3,683.67, up 0.19% on the day. The key support level, marked by the green line, is located at $3,726.4. Immediate resistance levels are identified at $3,933.1, $4,060.2 and $4,180.7, while support levels are at $3,596.2, $3,493.0 and $3,389.9.
The RSI (Relative strength index) is at 30, indicating that Ethereum is approaching oversold conditions, which could signal a potential buying opportunity. The 50-day EMA (exponential moving average) is located at $3,780 and is serving as a significant resistance point.
Despite the recent slight increase, Ethereum remains under pressure. Remaining above the $3,726.4 pivot point is crucial to maintaining a bullish outlook.
A break below this level could trigger heavy selling, potentially pushing prices towards subsequent support levels.
Solana price forecast
Solana it is currently trading at $162.6, up 0.13% on the day. The critical pivot point is set at $161.3. Immediate resistance levels are at $164.2, $166.6, and $169.8, while support levels are at $157.3, $152.8, and $149.8.
The RSI (Relative Strength Index) is at 28, indicating that Solana is approaching oversold territory, which could present a buying opportunity. The 50-day EMA (exponential moving average) is located at $168.37 and is serving as a significant resistance level.
Solana’s bullish outlook depends on maintaining the pivot point at $161.3. A break below this level could trigger substantial selling pressure, pushing prices towards lower support zones.
Dogecoin Price Prediction
Dogemoneta is trading at $0.1477, showing a slight increase of 0.07%. The crucial support level is marked at $0.1493. Immediate resistance levels are identified at $0.1540, $0.1587 and $0.1649, while support levels are at $0.1444, $0.1399 and $0.1359.
The RSI stands at 19, indicating that Dogecoin is in deeply oversold territory, suggesting that a potential reversal could be on the horizon. The 50-day EMA is positioned at $0.1579 and is acting as a resistance point.
Dogecoin’s bearish outlook prevails below the $0.1493 pivot point. A break above this level could shift the bias higher, while staying below could lead to further declines.
What’s next?
The current market downturn has created a challenging environment for major cryptocurrencies. Bitcoin’s fundamental support is at $68,556, with potential resistance at $69,929 and above. Ethereum remains under pressure despite trading at $3,683.67, with crucial support at $3,726.4.
Solana’s price at $162.6 is near its critical pivot of $161.3, and Dogecoin, priced at $0.1477, faces significant resistance at $0.1493.
The strong U.S. jobs report dampened expectations for a rate cut by the Federal Reserve, contributing to the sell-off. Traders should monitor these key levels carefully, as falling below them could lead to substantial selling pressure in the market.