Fragile peace talks amid a stronger USD

Fundamental Data

Hawkish statements from the FOMC meeting last week caused the US-dollar to strengthen. A stronger dollar would naturally cause the crypto market to weaken as well. This has only in fraction been the case throughout last week as some positive sentiment also returned.

A crucial point might follow with the peace talks between the United States and Iran this week. While Bitcoin’s drop ended on Friday last week the small recovery did not push the token much higher. Due to renewed Israeli attacks on Lebanon Iranian leaders chose to close the Strait of Hormuz again. A prolonged closure will eventually push oil prices to the upside and also cause risk assets to weaken. Should geopolitical tensions flare up again especially if no peace agreements can be made between the two parties, markets might start to weaken again.

Technical Analysis

BTC – Bitcoin is trading at USD 64,225. Following the renewed strength of the dollar Bitcoin was not able to keep the early gains last week. Instead, the market ended in a mostly sideways pattern without a clear trend for now. However, despite the stronger Greenback, BTC was able to remain relatively stable without adding further losses. Has the bearish trend finally come to a halt just above the psychological USD 60,000 price level?

BTCUSD weekly chart

On a technical note, the market remains capped between the USD 60,000 and USD 67,000 zone. A break above the resistance level might open up prices towards the 50- moving average level at around USD 72,000. New all- time- highs of the Nasdaq might support the bullish view, while renewed geopolitical tensions might also cause BTC to dive lower again.

ETH – Ethereum is currently trading at USD 1,730. The general trend of Ethereum still looks weak as no attempts towards higher prices have been made. Instead, the red candles indicating falling prices remain bigger, while green candlesticks remained mostly absent for the majority of this year so far.

ETHUSD weekly chart

Furthermore, Ethereum still trades below the rising trendline indicating potential pressure in the near- term. A break above the USD 2,000 level might certainly help to push the market back higher again. Currently, though, a break below the support level of USD 1,575 might rather be likely given the bearish trend. For long- term investors lower prices might then be used to buy into the market cheaply again.

XRP – Ripple is currently trading at USD 1.1431. The pressure of Ripple continues as last week’s attempt to rise ended in yet another bearish move. The pinbar candlestick pattern might suggest that the bearish continuation might continue.

 XRPUSD weekly chart

The weekly chart above shows that this week might be crucial. A break below the USD 1.1000 zone might indicate that prices could fall sharply again. XRP did stabilize since February this year. After the break of the USD 1.3000 zone the negative momentum might now start to gear up steam. The result could be an escalation to the downside towards the USD 0.7500 area.

SOL – Solana is currently trading at USD 72.78. Since the price fell below the USD 80.00 area the negative momentum was initially gearing up steam. However, the recovery in the past two weeks helped pushing the market higher again. 

SOLUSD monthly chart

It will now be interesting how the month of June will end. If the price is able to push back above the USD 80.00 level renewed upside momentum might follow. On the flipside if Solana will continue to trade towards or below the lows at about USD 60.00 the token might continue to slide further. Since September last year no month has been able to show rising prices bringing the general market sentiment down.