Last week was an 'action-pack' with the U.S. CPI report release and the FOMC meeting. The Fed did a "hawkish skip," stopping rate rises for the first time since early 2022, and policymakers also revised their expectations for the Fed Funds rate at the end of this year, raising it to 5.6% from 5.1%.
As the impact, Bitcoin (BTC) has dropped to its lowest level in three months, while Ethereum (ETH) continues to decline. BTC price dropped to the $25,000 level. The decrease in BTC was the first time it had fallen below this level since mid-March. BTC price began to recover over the weekend and is currently trading at $26,000 thanks to BlackRock, a large asset manager, filing for a Bitcoin ETF.
So far, whether BTC and ETH will continue their bearish trend or reverse and begin a positive trend is unclear.
The USDT stablecoin deviated from its peg to the US dollar on Thursday (15/06). This divergence was caused by an imbalance in Curve's 3pool, which resulted in a 0.3% drop in USDT price, which settled around $0.997. Meanwhile, its weight in the Curve 3pool increased to more than 70%, above its usual level of 33.1%. This price movement was eventually fixed the next day.
The current trend in BTC is showing a downward movement within a channel. To shift the sentiment towards a bullish outlook, it is crucial for BTC to break above the $27,000 level.
However, at the moment, the $25,000 level is playing a critical role as a key support level. It is acting as a significant barrier, preventing further decline in the BTC price. If BTC manages to hold above the $25,000 support level, it could serve as a solid foundation for a possible upward move. Nevertheless, breaking above the $27,000 resistance is necessary to shift the prevailing sentiment to a more bullish outlook.
ETH has recently experienced a significant development as it broke below a crucial support level at $1,750. As a result, the $1,750 level, which once served as support, has now transformed into a resistance level for ETH. This shift in dynamics has raised concerns among market participants, indicating a more bearish outlook for ETH compared to BTC.
With the breach of the $1,750 support, the next key level of support for ETH is anticipated to be around $1,500. This level will likely play a critical role in determining ETH's short-term trajectory and potential for recovery.
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