1. Macroeconomic Pressures
Interest Rate Concerns: Investors are cautious ahead of the release of U.S. producer price index (PPI) data for April, fearing potential inflation rebounds that might dampen risk appetite.
Profit-Taking: After recent rallies, some investors are securing profits, leading to a pullback in prices.
2. Regulatory Developments
Crackdown on Illicit Activities: The shutdown of major black markets like Haowang Guarantee, following Telegram’s purge of illicit accounts, has heightened regulatory scrutiny in the crypto space.
3. Market Sentiment and Technical Corrections
Sentiment Shift: Despite recent gains, market sentiment is turning cautious, with investors wary of potential overvaluation.
Technical Pullbacks: After strong rallies, natural corrections are occurring as assets hit resistance levels.
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📊 Technical Analysis: BTC & ETH
Bitcoin (BTC)
Current Price: Approximately $104,585.
Recent Performance: Bitcoin has seen a 10% weekly increase, stabilizing above $102,800.
Key Levels:
Support: $100,790
Resistance: $105,720
Ethereum (ETH)
Current Price: Approximately $2,399.
Recent Performance: Ethereum has experienced a 40% increase from its low point earlier this year, stabilizing above $2,500 as of mid-May.
Key Levels:
Support: $2,407, $1,723, and $1,471
Resistance: $2,740 to $3,746
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🧠 Final Thoughts
While the crypto market is facing a temporary slump due to macroeconomic uncertainties, regulatory actions, and technical corrections, the overall trend remains cautiously optimistic. Investors are advised to stay informed and consider both fundamental and technical factors when making decisions.