Bitcoin attempts relief rally but gets capped at $17K as market remains fearful

Bitcoin saw a 27% drawdown last week, going from \(21,450 to \)15,600. It was one of the worst weeks for the market leader in recent months. Mainly driven by FTX’s collapse, subsequent bankruptcy and $600M worth assets being drained from the exchange.

BTC fell to as low as \(15,850 earlier today following more contagion fears and general market drama. However, Binance CEO Changpeng Zhao's announcement regarding a crypto recovery fund brought relief to the market, with BTC attempting a relief rally that got rejected just above \)17,000.

Meanwhile, the S&P 500 has been going sideways, around 3,985. It needs to stay above 3,950 which will play a pivotal role in this uptrend. DXY on the other hand maintained its downward momentum but found support at 106. We’ll need to see if this holds over this week.

For now, the market remains uncertain, and Bitcoin losing the key support level of around $18,000 does not bode well for bulls in the short to mid-term.

Top altcoin gainers and losers

Gainers

• Trust Wallet Token TWT (+44.60%)
• KuCoin Token KCS (+19.14%)
• Cronos CRO (+10.39%)

Losers

• FTX Token FTT (-19.24%)
• Axie Infinity AXS (-13.77%)
• Casper CSPR (-5.55%)

Bitcoin Technical Analysis

Bitcoin faced a lot of selling pressure due to recent developments involving SBF and FTX. Currently, Bitcoin is trading at \(16,500 after being rejected from \)17,150. For this relief rally to continue Bitcoin needs to remain above \(16,500 till the PPI (Producer Price Index) release tomorrow, and if it comes out lower than expected we can expect to see \)17,500 and even $18,000 in the short term.

Ethereum Technical Analysis

Ethereum on the other hand is still outperforming Bitcoin by retaining value for June entrants and not breaking below \(1,000. Ethereum was able to find support at \)1,075 and we saw our Monday opening move up to \(1,290 before rejection. For ETH, a key area to maintain is \)1,230, otherwise, $1,050 will be on the table.

NFT Market Map

Most of the top NFT collections today saw a modest gain in volume, as there were only two projects that recorded a four-digit percent increase, and CyberBrokers (1,080%) was one of them.

Gods Unchained (2,087%) witnessed the change right before its community contest.

Coin360 Daily Digest

Here’s a rundown of the major crypto market news from today.

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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.