U.S. stock markets rallied on June 2, although nonfarm payrolls data for May showed a larger-than-expected growth than economists expected. The news has led some analysts to suggest that the stock market rally could be encouraged by other factors such as slower-than-expected hourly earnings growth and rising unemployment.
However, for the crypto market, the rally in the stock market did not have the expected positive impact. The reality is that the crypto market is still confined to a certain range. The CEO of Galaxy Digital, Mike Novogratz, shared in an interview with CNBC that the lack of institutional buying is the main cause of the lack of enthusiasm in the crypto market.
Historical data shows that the performance in June does not provide a clear advantage for the bulls (optimists, bullish expectations) or bears (pessimistic investors, bearish expectations) on the upside. market. According to figures from CoinGlass from 2013 to 2022, there were equal monthly closes with positive (bullish) and negative (bearish) performance in June.
Bitcoin price analysis
Over the last few days, the Bitcoin price has been trading in a descending channel pattern, i.e. the price moves downward over time. On May 31, Bitcoin price closed below the 20-day exponential moving average (EMA), with a price of $27,239. During this time, the bears (pessimistic investors, betting on the market’s decline) have managed to sustain the lower prices.
The bulls may attempt to push Bitcoin price back above the 20-day EMA. If successful, the BTC/USDT pair could reach resistance, where the bears are expected to create a strong defensive hedge.
If Bitcoin price turns down from the resistance, this will signal that the pair can continue to stay inside the descending channel for a longer period of time. The key support to watch on a dip is $25,250, as a break below this level would indicate that the bears have the upper hand.
The first sign of bullish strength will be a break and close above the descending channel. After that, the BTC/USDT pair could start its journey towards $31,000.
see more : Top 5 Altcoins with the biggest drop from May 26 to June 2