Heavy ETF outflows amid a rising USD 

Fundamental data:

The negative momentum of the crypto market has been gearing up steam again. Most tokens fell last week facing more pressure due to the fading positive sentiment of the equity market. Most indices like the S&P 500, Nasdaq among others lost some momentum after initially new highs had been created. Furthermore, renewed strength of the USD also causes the sentiment to weaken.

Last week, Bitcoin faced the worst trading week since the collapse of FTX in November 2022. In general, the crypto market had shed about USD 390 billion in value in one of the biggest drawdowns in years. Also, heavy outflows of ETFs and the fear that the Fed might hike interest rates, harm the market. Ultimately losses might intensify if the Greenback will rise even further.

Technical analysis:

– BTC: Bitcoin is trading at USD 62,742. The bearish momentum picked up more steam throughout last week. So far this month BTC fell nearly 20% and briefly also traded below the important psychological support level of USD 60,000. 

BTCUSD, weekly chart

The weekly chart above shows, that traders should expect the market to fall further. If the negative sentiment continues this way, more downside momentum might be on the cards. The mentioned support zone will offer more clarity here. However, the monthly chart currently shows, that BTC has been testing the 50- moving average level at around USD 59,380. If the market continues to trade above that price level a rebound might be on the cards for now.

– ETH: Ethereum is currently trading at USD 1,639. After the sharp fall in price last week some slight positive momentum might now be observed.

ETHUSD, daily chart

The daily chart above shows, that Ethereum broke the rising trend last week. Since the market abandoned the positive trend that zone might now act as a technical resistance area. Prices below the USD 2,040 level might hence be used to get into fresh short positions if the market will rise again. The fading sentiment in equity markets might also signal that the crypto market continues to remain weak.

– XRP: Ripple is trading at USD 1.1471. The bearish candlestick pattern in May might now signal that the price might continue to fall further. Currently, the slight support level at around 1.1300, which is marked by the 50- moving average zone helps the market to move higher.

XRPUSD, monthly chart

If XRP is able to continue trading above that zone the sentiment might remain slightly positive. However, the sharp fall in prices since October last year might be due to continue. The bearish momentum might continue until the USD 0.6500 range, which marks the long- term support range.

– SOL: Solana is trading at USD 64.88. The bearish continuation pattern seems to continue, as the price of this token also fell sharply last week. With the break of the USD 80.00 zone more downside should now be expected. A push to higher levels might only start to gear up more steam above the USD 100.00 area.

SOLUSD, weekly chart

Below the USD 80.00 area the focus should now be on the USD 30.00 zone. That range marks the long- term support, which might be tested as well if the bearish sentiment of Solana continues.