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Crypto market sees slight gains as fallout from SEC lawsuits subsides
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(Kitco News) - The cryptocurrency market saw slight gains on Thursday as the fallout from the Securities and Exchange Commission’s lawsuits against Binance and Coinbase has begun to subside even as the threat of additional enforcement actions remains.
Stocks also trended higher as the latest jobs data from the Department of Labor showed an uptick in unemployment claims, which came in at 261,000 versus the expected 235,000. This supported expectations by investors that the Federal Reserve would forego an additional interest rate hike at next week's Federal Open Market Committee (FOMC) meeting, providing a lift to equities prices.
At the close of markets, the S&P, Dow and Nasdaq all finished higher, up 0.63%, 0.54%, and 1.02%, respectively.
Data provided by TradingView shows that the trading range for Bitcoin (BTC) continues to coil, with the top crypto oscillating between $26,290 and $26,920 on Thursday and trading near support at $26,700 at the time of writing.
BTC/USD Chart by TradingView
The uneventful day for Bitcoin was reflected in the futures market, with July Bitcoin futures prices trading “near steady” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“Prices hit a nearly three-month low on Tuesday but trading has turned choppy late this week,” Wyckoff said. “The bears have the slight overall near-term technical advantage as a price downtrend is still in place on the daily bar chart.”
In order to avoid a bearish takeover of the price action, MN Trading founder Michaël van de Poppe has identified $26,100 as the support level to maintain to “avoid a cascade.”
#Bitcoin is still holding onto the range low, but the price action is simply disgusting.
— Michaël van de Poppe (@CryptoMichNL) June 7, 2023
Needs to hold above $26,100 to avoid a cascade. pic.twitter.com/HbWBgREkyK
And market analyst Rekt Captial said that BTC needs to reclaim $26,700 on the weekly chart to take pressure off the support being provided by the 200-day moving average.
#BTC has held the 200-week MA as support
— Rekt Capital (@rektcapital) June 8, 2023
However, $BTC is still below the Weekly level of ~$26700 (blue) which has been lost as support this week
To avoid extra pressure on the 200 MA, BTC needs to Weekly Close above blue to enable a move to black (~$27600)#Crypto #Bitcoin pic.twitter.com/2Xxj7pBypP
“BTC needs to invalidate the series of Lower Highs to move higher (blue) [on the chart below],” Rekt Capital wrote in a separate tweet. “Also the 200-week MA is acting as support (orange). Together, a pennant-like structure is forming. Price compression into the apex of this pattern will likely precede volatility.”
BTC/USD 1-week chart. Source: Twitter
Altcoin market was mixed
It was a mixed day for the altcoin market, with slightly more tokens in the top 200 seeing green than red. Little changed in the overall picture, however, as the total cryptocurrency market capitalization remains relatively flat.
Daily cryptocurrency market performance. Source: Coin360
TomoChain (TOMO) was the biggest gainer on the day, with its price increasing 17.53% to trade at $1.50, followed by a 7.25% increase for Terra Classic (LUNC), and a 6.56% gain for Storj (STORJ).
The overall cryptocurrency market cap now stands at $1.05 trillion, and Bitcoin’s dominance rate is 38%.
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