Cointree Crypto Market Update - June 10th 2020
Chop, chop, and more chop. The largest cryptocurrency by market cap has spent the week testing a shrinking range with no clear breakaway. At the time of writing, bitcoin is trading at $14,099 on the AUD charts.
Bitcoin had an unusual week, seeing both bulls and bears failing to decide a price direction with swings of up to 5%. Sharp drops toward $13,500 were quickly bought up, and moves the upside have likewise, been sold off quickly. If bitcoin can clear the $14,200 level, then we should see another push at the $15,000 resistance, but bulls must step in with strong volume. However, the “Darth Maul” candle seen on the 8th of June suggests extreme indecision in the market and if the price falls below the base of the ascending triangle, expect the bears to take control. Important to note too, bitcoin is battling the 50 EMA while holding the 100 and 200 on the 4hr - these converging moving averages are likely contributing to the market’s choppy nature.
In the background, the US stock market is firing on all cylinders, and so far, bitcoin has largely shown no interest in joining the party, even though we saw strong correlation earlier in the year. This is something to watch in the coming days.
In the broader market, a handful of cryptos saw gains as bitcoin consolidated. Loopring was a big winner, up 49%, while zilliqa was up 30%, and kyber token was up 25% over 7-days.