The decline in the crypto market has been seen as a quick shakeout, with traders expecting a ‘bullish’ comeback.
Bitcoin (BTC), Ethereum (ETH) and the broader altcoin market suffered losses after the US employment data came in better than expected on June 7. However, traders believe that the uptrend is a short “shake” before continuing.
“Strong sell to support. Alts suffered more,” the pseudonymous crypto trader Il Capo of Crypto announced to his 848,000 X followers on June 7. He added, “It looks like a swing” — a time when a large number of investors sell at the same time. market or economic instability.
On the same day, the US employment summary report showed a higher-than-expected increase, contradicting crypto analysts' predictions that a weak employment report would put pressure on the decision to reduce inflation, and Bitcoin hit new highs. Result.
“A weak surprise could lead to price cuts, and next week, we'll get the CPI inflation report. If the CPI [year-on-year] At 3.3% or below, Bitcoin could push it to a new all-time high,” 10x Head of Research Markus Thielen said on June 5.
Although the data is showing a different trend, Thielen does not believe that the employment report directly caused the crypto market crash. “Crypto sold off late Friday,” according to a June 7 report by Cointelegraph that said the data was “mixed.”
“US employment data was mixed, with the unemployment rate rising to 4.0%, but a bump in the number of jobs added. This was entirely due to an increase in part-time workers.”
Traders are watching key support levels closely.
The U.S. Bureau of Labor Statistics said total U.S. employment increased by 272,000 jobs in May, while the unemployment rate rose 0.1 percent.
“If support levels hold, we should see a bullish continuation in the near term,” explained Il Capo of Crypto Key.
Bitcoin is down 1.99% in the last 24 hours, down to $69,410. Ethereum fell 3.22%, while altcoins suffered more significant losses, with PEPE falling 10.54%, Solana down 4.89%, and DOGE down 7.88%, according to CoinMarketCap data.
Other traders also commented that the high level of the market is too far away, and also pointed out that the decline of the market is seen as an opportunity to buy.
“The real bull market hasn't started yet,” said anonymous crypto trader Kaleo in a June 7 X post.
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“We went a little deeper before the weekend, not what I expected, but we're going to play football anyway.” Anonymous crypto trader Jelle wrote on the same day.
“He bought some dips for a quick turnaround,” Jelle added.
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