StakingMarketRegulationCryptostake ExplainsUncharted
Daily Crypto Market Overview from CryptoStake

Today's crypto market overview - a correction or a rally continuation?

Today, the cryptocurrency market is showing signs of a shift towards the bearish side, potentially indicating the onset of a correction. This correction is highly likely after the recent hot rally over the past five days. Currently, 60% of the market is in the red, despite the persisting bullish sentiment.

  • The total market capitalization stands at $1.6 trillion, reflecting a 2.6% increase in the past 24 hours. However, it is currently in decline, further indicating that the market is poised to cool down.
  • The trading volume across all exchanges is $255.4 billion, experiencing a 10% decrease. Bitcoin dominance remains steady at 53%.
  • The Altcoin Season Index is at 37, revealing that the altcoin market is relatively weak despite substantial gains. This conforms to the rising dominance of Bitcoin.

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) experienced a notable surge of 15.4% this week, giving much-needed hope for the imminent return of the bull market. This upward momentum is closely linked to factors such as the Bitcoin Spot ETF application from various institutions, the settlement on Binance, and the ongoing pause in interest rate hikes by the Fed.

BTC/USDT Daily Chart for 6/12/2023

As for the price action, it has found support in a relatively high trading volume, aligning well with the overall bullish trend. However, the fact that BTC has pierced the upper part of the Bollinger Bands strongly suggests an increasing likelihood of a correction, potentially testing or even dipping below $40,000. In the bullish scenario, a test and penetration of the $45,000 level would be imminent.

Ethereum (ETH) Price Analysis

Ethereum (ETH) has put up an 11% gain over the past week, confirming the $2,000 level as a strong support. The price action continues to maintain its position well above the 50-period Exponential Moving Average (EMA), instilling greater confidence in the overall bullish trend.

ETH/USDT Daily Chart for 6/12/2023

Nevertheless, the recent period of heightened volatility has pushed the price of ETH beyond the Bollinger Bands' boundaries, signaling a potential correction toward the middle of the Bands, with a likely target around $2,100. Concurrently, the trading volume seems to be showing signs of decline, suggesting a potential calming of the price action. Yet, in the event of a persistent bullish scenario, ETH is highly likely to test the $2,400 price level, aiming to establish a strong foothold at that point.

Polkadot (DOT) Price Analysis

The top Proof of Stake coin has surged by 12.5% this week, contributing to the ongoing and confident uptrend. Preceding the current rally, a significant liquidity hunt in this market ignited the momentum, exemplified by a substantial red candle on November 21. Following this, the price rebounded to $5.4, confirmed support at $5.2, and subsequently surged to $6, reaching a significant psychological level.

DOT/USDT Daily Chart for 6/12/2023

The Hunt was executed beautifully, maintaining the price above the 50-period EMA without disrupting the overall uptrend structure, to avoid alarming the crowd and triggering a sell-off. Currently, DOT has established a new higher high, testing the $6 level with sufficient room and strength for a potential further upside move, as indicated by a notable increase in buying volume. However, it's essential to note that the overall crypto market may be poised for a correction, which could pull DOT down, potentially to the range of $5.6 - $5.4. In the event that buyers maintain control, the next point of resistance would be at $6.4.

Cosmos (ATOM) Price Analysis

One of the best Proof of Stake cryptocurrencies has struggled to perform amidst the current market-wide rally, repeatedly failing to breach the significant resistance level of $10. This resistance has been tested multiple times since the end of November but without success.

ATOM/USDT Daily Chart for 6/12/2023

It seems that sellers are maintaining control in this scenario, despite ATOM gaining 7% over the past week and 18.5% for the month. However, these gains primarily represent rebounds from substantial sell-offs, indicating a lack of a clear bullish bias. Despite this, ATOM is holding above the 50-period EMA, which functions as a robust support level at this point. While it's evident that buyers are eager to push ATOM beyond its seemingly unbreachable resistance, achieving this would require even more volume. In a bearish scenario, ATOM could potentially slide down to a comfortable price level ranging between $8.8 and $9.2.