Macro Overview
- US Unemployment Claims (Weekly):US Unemployment Claims surged to 231k, surpassing expectations of 212k. This news brought positivity to the crypto space, due to the historical negative correlation between the two. Following the announcement, the crypto market witnessed a notable upside move.
Top Tokens Update
- Injective Expands with Layer-3 Chain on Arbitrum: Injective, known for its Cosmos-based blockchain, plans to launch its own layer-3 network within the Ethereum ecosystem using Arbitrum’s technology. Dubbed “inEVM,” the network aims to enhance interoperability between Ethereum, Cosmos, and Solana, leveraging Arbitrum’s Orbit toolkit for infrastructure. This move signals Injective’s commitment to scalability and cross-chain connectivity.
- SEC Delays Decision on Invesco Galaxy Ethereum ETF: The SEC postpones its decision on the proposed Invesco Galaxy Ethereum ETF until July 5th, 2024. Initially presented by the Cboe BZX Exchange, the delay is attributed to the SEC’s need for additional time to evaluate the potential market implications of approving an Ethereum ETF.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| May 14 | 6:00 PM | US PPI m/m | Actual’ less than ‘Forecast’ is good for crypto |
| May 14 | 7:30 PM | US Fed Chair Powell Speaks | More dovish than expected is good for crypto |
| May 15 | 6:00 PM | US CPI y/y | Actual’ less than ‘Forecast’ is good for crypto |
| May 16 | 6:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is bullish.
- This week, positive developments, favorable macro data for crypto, and neutral to positive ETF inflows contributed to a sideways to slightly upward movement in BTC. Expectations are for continued sideways to upward trends in the coming week, especially with CPI, PPI, and other macro announcements on the horizon. From a technical perspective, BTC appears bullish in the short term after bouncing back from the 0.5 Fibonacci support level. The positive weekly close also adds to the bullish sentiment, suggesting the potential for new higher highs in the near future.
- Key support levels to consider are around $57,000, $59,000 and $60,000. On the upside, resistance levels is at $64,500 , $67,000, & $69,000.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears neutral to bullish.
- ETH continues to lag behind BTC and appears weak, but if BTC experiences an upward movement, ETH is likely to follow suit, albeit at a slower pace. The ETH/BTC pair is currently at a support level, and if it rebounds from here, ETH could potentially take the lead. However, if it fails to bounce, ETH may continue to underperform BTC. From a technical standpoint, ETH appears bullish in the shorter time frame, but further confirmations are needed in the higher time frame to solidify this outlook.
- Significant support levels include $2950 and $2875, while resistance levels to watch are at $3250, $3500 and $3650.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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