- June 9, 2024
- Posted by: [email protected]
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Bitcoin (BTC), the leading cryptocurrency, experienced a significant drop, hitting an intraday low of around $68,500. This downturn coincided with ‘Roaring Kitty’s’ YouTube livestream, which failed to stimulate the market. The decline was further influenced by a stronger-than-expected non-farm payroll report for May, which added 272,000 new jobs, thereby strengthening the US dollar. This development dampened hopes for a Federal Reserve interest rate cut, negatively impacting Bitcoin price predictions and overall market sentiment. Ethereum (ETH) and other altcoins also saw declines, contributing to a 3% drop in the crypto market.
Keith Gill, known as “Roaring Kitty,” hosted his first livestream in three years, drawing over 600,000 viewers. He discussed GameStop (GME.N.) and its future, interspersing his talk with jokes, memes, and disclaimers about investment risks. GameStop shares initially surged nearly 50% following Gill’s livestream announcement but plummeted nearly 40% post-livestream after announcing a $3 billion share sale, closing at $28.22 after volatile trading. GameStop’s trading volume reached $10 billion, trailing only Nvidia and Apple. This event failed to boost market enthusiasm, compounded by the robust non-farm payroll report, which added 272,000 new jobs and strengthened the US dollar. Consequently, expectations for a Federal Reserve interest rate cut were dampened, impacting Bitcoin price predictions and market sentiment.
The scenario highlights the ongoing challenges and volatility in both the crypto and traditional financial markets. The dip in Bitcoin’s price was also attributed to the US NFP data, as investors reacted to stronger-than-expected U.S. jobs data. This data indicated a resilient labor market, potentially delaying any Federal Reserve interest rate cuts. As a result, the dollar’s value improved, dampening hopes of Bitcoin reaching an all-time high before the weekend.
Above this pivot, the outlook remains bullish. Immediate resistance levels are at $69,728, $70,643, and $71,961, where Bitcoin might encounter selling pressure. On the downside, support levels are at $67,570, $66,620, and $65,881, providing potential buying interest. The Relative Strength Index (RSI) is at 41, indicating a neutral market stance without strong buying or selling pressure. The 50-day Exponential Moving Average (EMA) at $69,689 acts as a resistance point, suggesting it may be challenging for Bitcoin to rise above this level. An upward trendline supports Bitcoin near the $68,500 level, reinforcing the bullish outlook. However, if Bitcoin drops below $68,556, there could be sharp selling, leading to a significant price decrease.
Ethereum and other altcoins also saw declines, contributing to the overall negative sentiment in the crypto market. The inability of ‘Roaring Kitty’ (Keith Gill) to rejuvenate interest in GameStop, which fell nearly 40% after announcing a share sale, further underscores the volatility and speculative nature of financial markets. This market behavior potentially impacts sentiment within the cryptocurrency sphere as well. Investors need to remain vigilant and closely monitor market trends, as the interconnectedness of various financial sectors can lead to rapid shifts in market conditions.
