Cryptocurrency markets have been on the upswing this week, with Bitcoin experiencing a massive increase in valuation. The cryptocurrency is now worth over $8100 USD and has recouped nearly all of its losses from last month’s price drop. However, before we get too excited about impending returns for investors and enthusiasts alike, it should be noted that many traders are unsure if prices will continue to rise or if they may still fall further. Investors who invested late into the market might benefit most from remaining cautious until more concrete indicators emerge
The “bitcoin bottom 2022” is a prediction that Bitcoin will be at $0.02 by the end of 2022. This prediction comes from an anonymous trader who has been right about Bitcoin’s price movements in the past.
Between May 23 and May 27, the equities markets had an impressive run, with the tech-heavy NASDAQ (NASDAQ: QQQ) ETF up over 7% and the S&P 500 (NYSE: SPY) up over 6.50%. However, this week whipsaws in price action occurred throughout the week and while the Friday trade session is not yet over, the weekly candlesticks suggest a close near last week’s open.
Weekly chart of the QQQ (NYSE). TradingView is the source of this information.
All major indices are now facing substantial technical resistance levels above their current trading levels. When you add in rising economic uncertainties and recession worries, the rebound may be limited.
Cryptocurrencies are once again on the down.
The crypto market may conclude the week reasonably flat but down for the week, extending its losing skid to an all-time high of nine weeks. Cardano (ADA) and Stellar (XLM), for example, were in the green this week, but both had 50 percent to 70 percent of their gains wiped away.
Weekly chart of the total market capitalization of cryptocurrencies. TradingView is the source of this information.
The overall market value of the cryptocurrency market is slightly over $1.20 trillion, putting it dangerously close to the important $1 trillion milestone.
The price of oil continues to grow.
Light crude futures (NYMEX: CL) are continuing to surge and may close at 14-year highs, which have not been seen since late July 2008. Oil has risen more than 20% since April 11 and is now trading just below the $120 mark.
Weekly chart of oil futures (NYMEX). TradingView is the source of this information.
On June 1, the weekly crude oil inventory data indicated a huge loss of -5 million barrels, compared to the projected -1.35 million. Even OPEC+’s recent deal to almost increase supply has failed to halt the surge in oil prices.
Food prices are plummeting.
Wheat futures (CBOT: ZW) and corn futures (CBOT: ZC) are down -10% and -6%, respectively, this week. The dip in these markets, on the other hand, is most likely due to overbought circumstances that have been stretched, resulting in a technical downturn. This market continues to be plagued by global anxieties and uncertainty regarding food security and shortages.
Weekly chart of wheat futures (CBOT). TradingView is the source of this information.
A dollar comeback might be on the way.
The dollar, like wheat and maize, is coming off a technical drop from prolonged overbought levels. As a consequence, the US Dollar Index (TVC: DXY) has an indicated close for the week that is higher, with a marginal gain of 0.3 percent, according to the Ichimoku Kinko Hyo method.
The DXY gained more than 1% after a strong technical rebound of the weekly Tenkan-Sen, but most of those gains have already been reversed. The DXY might fall to the important 100 level at the weekly Kijun-Sen, but the concealed positive divergence between the chart and the composite index could keep the index from falling any further.
The DXY is often seen as a non-correlated market by cryptocurrency traders and investors. In other words, as the DXY rises, Bitcoin (BTC) and other cryptocurrencies fall.
Although this isn’t usually the case, the DXY should always be considered a flight to safety. It is considered that as money flows into the dollar, market players feel fearful and apprehensive.
The DXY may continue its steady march upward, despite persistent economic uncertainties and some shakiness in the job sector.
Important economic data will be released next week, so keep an eye on it.
- Data on the Canadian balance of trade and the Ivey PMI are released on June 7. Stocks of API Crude Oil in the United States have changed.
- The European Union Central Bank will make an interest rate decision on June 9th. Initial unemployment claims in the United States.
- The unemployment rate in Canada as of June 10th. Michigan consumer sentiment, US core inflation (MoM), real inflation rate, core inflation (YoY), and US core inflation (MoM).
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
Bitcoin has been trading sideways for the last few days. The cryptocurrency is currently trading at $6,934. It has reached bottom and may give back some of its gains before continuing to rise again. Reference: has bitcoin reached bottom.
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