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(Kitco News) – The cryptocurrency market started the week off with a whimper as the lasting effects of last week’s enforcement actions by the U.S. Securities and Exchange Commission combined with a busy week of economic data and interest rate announcements kept trading activity subdued.
Stocks, on the other hand, rallied higher on Monday, continuing the trend from last week which saw the S&P enter into bull market territory, closing the week at its highest level since August, while the Nasdaq recorded its seventh consecutive positive weekly close. At the closing bell on Monday, the S&P, Dow and Nasdaq were all in the green, up 0.93%, 0.56%, and 1.53%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) traded between a high of $26,275 and a low of $25,760 on the day and is holding near support at $26,000 at the time of writing.
BTC/USD Chart by TradingView
“July Bitcoin futures prices traded lower in early U.S. trading hours Monday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The bears do have the slight overall near-term technical advantage as a gentle price downtrend is in place on the daily bar chart,” Wyckoff said. “The path of least resistance for prices is presently sideways to lower.”
MN Trading founder Michaël van de Poppe referred to the ongoing sideways price action as “a waiting game” for Bitcoin and suggested there could be another sweep of the lows for the top crypto before a possible resumption of the uptrend.
Waiting game for the markets here on #Bitcoin.
Wouldn’t be surprised that we’re going to have a sweep of the lows before we’ll go back up.
$26,100 still a big hurdle to take. pic.twitter.com/EOKhAxJBx9
— Michaël van de Poppe (@CryptoMichNL) June 12, 2023
Market analyst Rekt Capital noted that the downtrend has been in place since Bitcoin’s mid-April high and could lead to a new “lower high” over the next couple of weeks if nothing changes.
Since the mid-April rally to ~$31000, #BTC has been in a consistent downtrend$BTC has been forming new Lower Highs every 2-3 weeks or so
If this pattern continues, a new Lower High may occur in the next week or two#Crypto #Bitcoin pic.twitter.com/GWx0LO2Gig
— Rekt Capital (@rektcapital) June 12, 2023
Seeing a similar trend, Poppe noted in a follow-up tweet, “Ultimately, we’ll see [in the] coming few days whether that’s going to sustain or whether we’ll continue this downwards slope.”
Altcoins sink deeper into the red
The focus of the SEC on identifying certain tokens as securities continued to weigh heavily on the altcoin market on Monday, with the majority of tokens seeing red as investors took a hands-off approach.
Daily cryptocurrency market performance. Source: Coin360
Notable exceptions to the broad downturn include Stella (ALPHA) and Sui (SUI), which recorded gains of 7.45% and 6.26% in trading on Monday.
The overall cryptocurrency market cap now stands at $1.05 trillion, and Bitcoin’s dominance rate is 47.7%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
