On the Radar – Coins to Watch 06/06

  • Bitcoin on the brink of new all time highs
  • Canada becomes the first G7 country to drop interest rates
  • Altcoin analysis: ENA and RNDR

With Bitcoin breaking above $70k this week, things may start heating up. 

Notable buying power has been coming from US Exchange-Traded Funds (ETFs) from the very start of this week with inflows hitting $1.3 Billion USD in the last three days. For perspective, the previous 14 days we have averaged $151 Million USD per day. 

If you have taken a break, now could be the perfect time to start paying attention again. We eagerly await to see if new all-time highs are coming—or if we are simply going to trade back lower for a little longer. 

Macro to Watch

The remainder of this week, there is high-impact data on the US unemployment rate, which is expected to be 3.9%. So far this week, we have seen a weakening labour market. This was seen on Wednesday, with US Non-farm Employment Change coming in 12% lower than expected.

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As a reminder, US policymakers have stated that a weakening labour market and inflation data will be crucial in lowering interest rates.

This leads us to the big dance next week in the US: key inflation data, the latest figures, and statements from policymakers regarding interest rates. This will all start on Wednesday next week. See below for a detailed roadmap.

Hot Take

From a personal perspective, we may not see new all-time highs until key macroeconomic data lands.
But on that note, I could see that because labour data has landed weak consecutively now, investors and traders might be willing to bet higher – in anticipation that things can only get better, not worse ahead of the official statements and releases.

Related: Cramer Hits Gensler With The Question On Everyone’s Lips: Wen BONK?

Bitcoin – BTC

Bitcoin is currently trading close to April highs and new all-time highs. Based on the current market structure, two possible outcomes are below. 

Source: TradingView

Bullish Scenario

Buyers continuing to pay higher prices could be enough for Bitcoin to break this range since April, and we could then start to see new all-time highs. 

Bearish Scenario

Should we not seen buyers continue to pay higher prices, Bitcoin could then return to the middle of the April range. 

Related: The Rollercoaster of Trading Crypto: My Strategies, Profits, and Tools

Ethena – ENA

Having recently broken its most recent trend of resistance, Ethena is in the process of setting up a classic Fibonacci move. Below is my interpretation of how this would look and when the setup would favour the bulls and bears. 

Source: TradingView

Bullish scenario 

If we see strength remain in Bitcoin in the coming days, I would expect ENA to move towards the green box in the chart above and hold above the 0.618 ‘Golden Ratio’ Fibonacci level ($1.18). 

Once above $1.18, we could then expect previous high of $1.52, and then Fibonacci price extensions of $1.75 and $2.05 should the bulls remain bidding. 

Bearish scenario

Failure to get above $1.18 could result in price moving back lower, to a level where buyers do begin to step in again. 

Render – RNDR

Similar to Ethena above, Render has progressed a little further towards the ‘Golden Fib’ level, where it is showing signs of strength above the mid-price of this range. Below are two potential scenarios from here. 

Source: Tradingview 

Bullish scenario 

Render bulls breaking price well above $10.94 (the ‘Golden Fib’ level) and continuing to trend higher towards the previous high of $13.838. 

From there we could technically expect levels of $15.89 and $18.51 to hold significance. 

Bearish scenario

Failure to rally above $10.94, resulting in a retest of previous lows. 


See you all again next week.

Keep up to date.

Stay informed and connected! I’m excited to announce my new YouTube channel, Crypto with Pav, where I dive into the latest trends in cryptocurrency, offering insights on what’s coming next and highlighting news and technical structure I believe is crucial. 

I’m also on X.

Cheers!

Pav Hundal
Author

Pav Hundal

Pav Hundal, is a trader at heart. Making the transition from the FX markets to the dynamic world of cryptocurrency in 2017. With a keen eye for both technical and fundamental analysis, Pav places special emphasis on tracking macroeconomic conditions to build narratives around current trends. Currently, he lends his expertise as the Lead Market Analyst at Swyftx.

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