In Crypto Consolidation Continues with Breakout

The past few weeks have been a time of consolidation while the market is trying to leave its current levels to regain its bullish trends. In addition, there was a 2021 Miami Bitcoin conference and another tweet from Musk. All of this affected crypto and blockchain.

On the Central Bank Digital Currency front, the Bank of Thailand started to prototype a digital currency format for three years to implement. Such experiments are likely to come more and boost the cryptocurrency market in the future.

A NY-based exchange-traded fund, WisdomTree, decided to file with the SEC for ETF. The fund applied for a Bitcoin-based ETF. ETFs might give access to millions of people to invest in cryptocurrencies indirectly.

In terms of market movements, May had major volatilities after some highs in April. Bitcoin reached a low of $30.8K on May 19. Then, it declined by more than 50%. Less than a week later, it tested similar levels again. Now, some symmetrical patterns might break out on any side. It depends on the market segment.

Overview of The Crypto Market

On June 3, Bitcoin seemed to be heading towards $41K, but Elon Musk’s tweet got back to the line around $38K. It quickly recovered during the day, however. Perhaps it is exhibiting a sign that the market might be getting insulated from Musk’s influence.

The second-largest cryptocurrency – Ethereum, showed a trend that is similar to Bitcoin. In the last week, it raised by 4%, but now it pushes back. On Wednesday, Ethereum was above $2,880. Soon, this currency might need to break more than the $3,000 mark and maintain it.

Overall, it should see the recovery for Ethereum and Bitcoin together. Besides those two cryptocurrencies, Dogecoin, Cardano, and Polygon are likely to experience gain once Bitcoin breaks out.