Market Shake-Up! Crypto’s TOTAL Market Cap Drops 8% While Bitcoin Eyes $60,000

  • TOTAL Market Cap: Sparks caution as it re-enters a long-term channel formed at the start of May. Altcoins SMASHED!
  • Massive Outflows: Approximately $600 million was pulled from digital-asset products last week, marking the largest outflow since March.
  • Bitcoin Still Trapped: Bitcoin currently sits at an interim 4-hour support level, with the key daily level at approximately $60,000.

Crypto: The Wild West?!

It’s been an intense start to the week, with some top 100 alts plummeting 20% since the weekly close, including coins such as FTM, RNDR, UNI, and THETA. Bitcoin has remained relatively stable in comparison, now ranging between $67,000 and $65,000 after breaking through a critical support level at approximately $67,000. This level was also supported by the daily 50 EMA, as well as the 4-hour 50 and 200 EMA, which has now flipped bearish with a death cross.

The bullish sentiment is low, with Twitter users going into a frenzy… Is this a sign that the drop has started to push out the weak hands? Some will think so, but I am not entirely convinced.

If you remove the noise, you can see that on the Bitcoin daily chart, there isn’t much between approximately $70,000 and $60,000. Bitcoin has primarily been trending within a consolidation/sideways channel since March.

Source: TradingView

Bitcoin Investments Decimated since FOMC.

Bitcoin investment products took a massive hit last week, with around $600 million pulled out following mixed economic signals from the U.S. as reported by CoinShares. The entire digital asset ecosystem felt the impact, driven by Bitcoin’s losses. This marks the largest outflow since March 22. Grayscale’s GBTC was hit the hardest, with $273 million in outflows.

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Source: CoinShares

Adding to the pressure, US inflation data continues to weigh on risk assets. The Federal Open Market Committee (FOMC) hinted that we might only see one rate cut this year, down from the originally projected three. This hawkish stance crushed the earlier optimism from better-than-expected inflation numbers.

Is the Cryptocurrency TOTAL Chart Hinting at a Further Drop?

Looking at the TOTAL Market Cap chart, it has re-entered a channel which originally started in March. Although it attempted to break out at the start of June when BTC tested the $72,000 resistance, it has since retraced within the channel. Could this be an early indicator of a much larger drop in the overall crypto market? This is something I am keeping a close eye on.

Source: TradingView

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author takes no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.

Matthew Stella
Author

Matthew Stella

Matt Stella embarked on his crypto trading journey when Bitcoin was valued at just $3,000. As the co-founder and Head Coach at Empire Crypto Trading, Matt excels in Technical Analysis and in pinpointing key areas of price action. He is dedicated to empowering the crypto community through education, offering weekly Market Scans, Technical Analysis tutorials, and leading a vibrant community of crypto enthusiasts on the Empire Crypto Trading platform, where members collaborate to navigate the market. Every Tuesday, he shares his invaluable market insights with the CNA community.

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