US Supreme Court’s Computer Fraud Ruling Has Big Implications for Crypto
Bitcoin had a success on Monday just to recover as many market participants see price weakness ahead.
Bitcoin (BTC) was trading at around $ 9,426 from 8:00 p.m. UTC (4:00 p.m. ET) and has grown less than 1 percent in the last 24 hours.
On Monday at 00:00 UTC (Sunday, 8:00 p.m. EDT), bitcoin changed hands at cash exchanges such as Coinbase for $ 9,327. It then fell 5% to just $ 8,895 before rising to over $ 9,300 again. The price is now above the 10-day and 50-day moving averages, a bullish technical indicator.
"Bitcoin is trading with other asset classes after it has lost momentum in the short term," said Katie Stockton, senior analyst for Fairlead Strategies. "There is room for short-term oversold territory, but no support has been broken. The neutral consolidation phase is intact in my work as long as Bitcoin is above the 200-day moving average of around $ 8,340 and below the resistance near $ 10,055. "
Read more: Bitcoin price decline can be a bear trap, the options market suggests
Traders say traditional markets seem to take the lead these days. "Our current concern is the correlation between stocks and gold," Singapore-based quantitative trading company QCP Capital wrote in an investor note on Monday. "If both trade lower at the same time, which happened before Black Thursday in March and also before the sell-off on Thursday last week, this could be a strong signal for BTC to trade one leg lower."
Both Bitcoin and the S&P 500 saw similar movements in most markets on June 10. Gold held its ground year-round, except for the March decline.
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The performance of this bitcoin corresponds to the recent stocks that George Clayton of Cryptanalysis Capital is concerned with. "The correlation with stocks continues," he told CoinDesk. "This is currently negative for crypto."
Read more: JPMorgan analysts: Bitcoin is likely to survive (as a speculative asset)
The market may seem weak at the moment, but it could be worse, said Chris Thomas, Head of Digital Assets at Swissquote Bank. “An interesting point is that miners don't seem to sell. Otherwise we would have seen the market significantly lower. "
A look at the market for options expiring in June shows where some traders see the price heading. According to the aggregator Skew, the probability for Bitcoin is 90% above USD 7,500, but for June it is only 13% for USD 10,500.
Thomas said the sweet spot for Bitcoin is on the order of $ 8,000. "I think we're going to drift a bit over the next few days and weeks, and maybe take a new leg deeper into the $ 8,000 region," he said. "There are many buyers and sellers waiting on the sidelines."
Digital assets on the large blackboard from CoinDesk are usually on red Monday. Ether (ETH), the second largest cryptocurrency by market cap, is trading at USD 232 and is falling 1% within 24 hours from 8:00 PM UTC (4:00 PM ET).
Read More: Cardano isn't an Ethereum killer yet, but he wins in crypto markets
The number of unique addresses that are either active as senders or recipients in the Ethereum network has increased. Activity increased to 389,114 active addresses during the corona virus crash in March. On June 2, the number reached 387,293, reaching the high of March 21 of the previous year.
The biggest losers in cryptocurrencies that day included Decred (DCR) in the red of 4.4%, Qtum (QTUM) with a decline of 3.4% and Bitcoin SV (BSV) with a decrease of 3.2%. The only winner was zcash (ZEC) in the green area of 2.8%. All price changes were from 20:00 UTC (16:00 ET).
In terms of raw materials, oil rose 1.5%, with one barrel of crude oil priced at $ 37 at press time.
Gold is trading flat, with the yellow metal slipping less than one percent and trading at around $ 1,726 a day.
Read More: Cryptocurrency markets are decentralized, but still accountable
In Asia, the Nikkei 225 index for listed companies in Japan closed in the red of 3.4% due to concerns that the coronavirus pandemic could make a comeback. In Europe, the FTSE 100 index ended trading flat and declined less than one percent due to concerns. COVID-19 is experiencing a resurgence.
The US S&P 500 index rose less than one percent. Since early 2020, tech stock Amazon.com, which is in the top 5 of the S&P 500, has actually outperformed Bitcoin, up 39% over the 31% appreciation in the world's oldest currency.
US government bonds were mixed that day. Yields moving in the opposite direction to price fell the most year over year, hitting the red 5%.
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