Cryptocurrency market decline appears to be shaking quickly, traders expect ‘strong’ rebound
Bitcoin (BTC), Ethereum (ETH) and the broader altcoin market suffered declines after U.S. employment data on June 7 exceeded expectations. However, traders believe this is just a temporary “wobble” before the uptrend continues.
“Strong sell on support. “Alts have suffered more,” Crypto pseudonym trader Il Capo declared to his 848,000 When selling, market or economic uncertainty.
On the same day, the U.S. Employment Situation Summary report revealed higher-than-expected job growth, which contradicted predictions by cryptocurrency analysts that a weak jobs report would put pressure on the decision to lower inflation and push Bitcoin to new highs. result.
“A mild surprise could bring another rate cut and we will get the CPI inflation report next week. If the CPI (year-over-year) is below 3.3%, Bitcoin will likely hit a new all-time high,” Markus Thielen, head of 10x Research, said on June 5.
Although the data shows a different trend, Thielen does not believe the employment report directly caused the cryptocurrency market decline. “Cryptocurrencies sold off late Friday without a definitive catalyst,” he said in a June 7 report seen by Cointelegraph, claiming the data was “mixed.”
“The U.S. employment data was mixed, with the unemployment rate rising to 4.0%, but the number of jobs added was surprising, driven entirely by the increase in part-time workers.”
Traders are closely watching key support levels
According to the Bureau of Labor Statistics, total U.S. jobs increased by 272,000 in May and the unemployment rate increased by 0.1%.
Crypto’s Il Capo explained that if the key “support levels hold, we will soon see a continuation of the bullish trend.”
Bitcoin fell 1.99% over the last 24 hours, falling back to $69,410. Ethereum fell 3.22%, while altcoins suffered even bigger losses, with PEPE down 10.54%, Solana down 4.89% and DOGE down 7.88%, according to CoinMarketCap data.
Other traders also suggested using the market downturn as a buying opportunity, saying the market’s peak is still far away.
“The real bull market hasn’t even started yet,” anonymous cryptocurrency trader Kaleo claimed in an X post on June 7.
Related: Bitcoin ETF Flows Will Send BTC Price ‘Parabolic Run’, Traders Say.
“There was a bit of a dip just before the weekend. It wasn’t what we expected, but we played anyway.” On the same day, anonymous cryptocurrency trader Jelle also wrote a post.
“I bought some dips for a quick turnaround trade,” Jelle added.
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