Bitcoin Stabilizes Following Sell-Off; QCP Capital Sees Buying Opportunity Amid Volatility
Summary:
Following a sudden sell-off on June 8, Bitcoin's (BTC) value steadied around $69,000, while Ether (ETH) dipped momentarily below $3,600. Triggered by inconsistent US employment data and market reactions to an online broadcast by anonymous investor Roaring Kitty, a subsequent plunge in altcoins further fueled market volatility. Despite this, trading firm QCP Capital viewed the downturn as an opportunity to buy the dip, given future Federal Reserve actions might favor risk assets. Key levels to monitor include $67,500, the monthly opening rate, and $64-65,000, the last hope before a portfolio collapse.
On June 8, Bitcoin's (BTC) value revolved around $69,000, following a sudden sell-off that left market participants reeling. Information gathered from Cointelegraph Markets Pro and TradingView illustrates that the BTC price trend was beginning to stabilize as the weekend approached. The world's largest cryptocurrency faced unforeseen fluctuations following the previously opened Wall Street, triggered by inconsistent US employment data. A corresponding plunge in altcoins further accentuated this volatility, largely driven by market reactions to an online broadcast by an investor known as Roaring Kitty.
Consequently, the BTC/USD hit a local low of $68,450 on Bitstamp, while Ether (ETH), the top altcoin, momentarily dropped below $3,600.
Reflecting on the events of the preceding 24 hours, QCP Capital, a trading company, described the US session as "doubly odd." An ensuing level of confusion was sufficient to initiate a risk-off prior to the release of US inflation figures and the Federal Open Market Committee (FOMC) assembly next Wednesday. The firm alluded to the forthcoming release of crucial macro data, including the Consumer Price Index (CPI) and the Federal Reserve's interest rate policy deliberation.
QCP Capital mentioned the live broadcast by Roaring Kitty, which attracted nearly a million viewers while GameStop's (GME) stock price plummeted. The concurrent collapse of altcoins and meme coins, which reduced their market capitalization by over $40 billion, was likely not happenstance.
Despite the market downturn, the company saw the local lows on BTC and ETH as an opportunity to buy the dip, as future Federal Reserve actions may favor risk assets.
Crypto analysts have identified the $67,500 monthly opening rate as a crucial point of support if the current weakness continues. Crypto Chase, a well-known trader, stated, "Many coins are on the verge now, and these are the trades I favor. If we lose all these levels, we would partially lose the current HTF bullish bias. The last hope before collapse would be BTC holding at 64-65K."
A positive element emerged from a leverage washout across Bitcoin and Ether. As Daan Crypto Trades, another trader, noted, "Bitcoin lost about $1.3 billion in open interest in this flush. ETH also lost nearly $800 million, totaling over $2 billion for BTC and ETH combined."
Prior reports from Cointelegraph highlighted global liquidity trends that are already promoting a BTC price breakout to record highs. This article, however, does not provide any investment or trading guidance. Investments and trading activities carry inherent risks, and as such, readers should conduct their own comprehensive research before making any decisions.
Published At
6/8/2024 10:12:38 AM
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