Written by Metal Team

On June 7, 2021

Market Report June 7 2021

Bitcoin (BTCUSD) (3-day/8-hour)

Bitcoin’s first week of June was for the most part uneventful.  Price has lingered in the mid $30k’s, with support stepping in at the right times but with little to no follow-through.

We can see in our 3-day chart on the left that our green “support zone” has held up, but we have failed to breach the orange “neutral” zone as of yet. 

Zooming in on the 8-hour chart on the right, we see a failed break above this smaller range’s “neutral” zone, followed by a return to the green support box. 

Support has held, but bulls will need to break through the $38k area in the short term, and the $46k area on the more macro scale to avoid further downside.  

A rejection at either of these zones: $37-$38k, or $42-46k, could lead to another strong drop in price.

As always- be prepared.  There’s no telling what is coming next.

Ethereum (ETHUSD) (3-day/8-hour)

Ethereum has stayed relatively flat for the past week as well, with a similar tale told by price action across these different ranges we’ve plotted.

The 3-day chart on the left shows a nice reaction (large lower wicks) to the green support box, but just like we see on BTC’s macro view, follow-through is non-existent. 

Zooming in on the 8-hour chart, we can see the “neutral” orange zone acting as support so far, but bears still could pounce with a rejection from the $2,900 to $3,200 zone.  Bulls need to conquer this zone in the short term as well as the $3,500-3,800 zone to have a more bullish macro outlook.

Fundamentals & Correlations

The Bitcoin Dominance (BTC.D) and US Dollar Index (DXY) correlation metrics remain relatively unchanged since last week’s report and provides no additional insights.

BTC Dominance is well below 51%, suggesting that alts could be less affected by every move BTC makes.

The DXY is showing a bearish retest on the yellow diagonal support line that broke down two weeks ago and is now acting as a presumed resistance.  What we can infer from this is that the US dollar will continue to weaken against other major world currencies and that the prices of everything in US dollars should rise. 

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