UseTheBitcoin Market Update (BTC & ETH) | June 5th, 2024

Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on Bitcoin (BTC) and Ethereum (ETH).

Bitcoin (BTC)

When considering investing in Bitcoin, it is advisable to start by purchasing a small amount if it breaks the $71,000 resistance level. This cautious approach is recommended because Bitcoin is currently facing a strong resistance area. As illustrated in the chart, Bitcoin has attempted to surpass this level three times but has failed on each occasion. Therefore, it is prudent to risk only a small amount initially to mitigate potential losses if Bitcoin fails to break through this level once again.

Should Bitcoin successfully break the next resistance level and consolidate around $73,000, it would be wise to increase the investment. This area appears to be a weaker resistance zone, and a successful breakthrough could lead to significant upward momentum. If Bitcoin manages to break its previous all-time high, this would serve as confirmation that its momentum remains strong and that the cryptocurrency could reach even higher levels.

Ethereum (ETH)

For Ethereum, the current market behavior indicates a period of consolidation. This phase presents an optimal opportunity to buy while the price is relatively low and before significant market movements occur. If you have extra funds available, it is worth considering an investment in Ethereum now. Although there is a possibility that the price may drop in the short term, the overall outlook is bullish, especially with the recent approval of the Ethereum ETF.

Nevertheless, investors should be aware of the risk of market manipulation. Large investors, often referred to as “whales,” can manipulate the market to eliminate weaker hands, potentially pushing the price down to around $3,400, which has been a recent low. Despite this risk, the potential for Ethereum to rise significantly remains strong, making it a compelling investment opportunity in the current market conditions.

Final Thoughts

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