The crypto
market capitalisation rose 0.55% over the past 24 hours to 1.134 trillion. Late
Wednesday afternoon, another attempt was made to break above 1.14 trillion,
following the US stock market rally on the government debt ceiling news.
However, it has so far failed to stay in this territory.

Bitcoin is
up 0.7% at $27.2K, staying within the recovery trend that has been in place
since the 12th. However, this recovery is painfully slow, and local resistance
at $27.5K, which has been supporting since late March, remains in place.

According to
Santiment, large Bitcoin holders continue accumulating BTC – over the past five
weeks, cryptocurrency holdings have increased by nearly 85,000 BTC ($2.3
billion). Santiment believes Bitcoin is now in a consolidation phase before a
new surge.

News background

The stock
and cryptocurrency markets will collapse if the US defaults, says Mike McGlone,
senior strategist at Bloomberg Intelligence. He is bearish on cryptocurrencies
but bullish on gold.

Lightning
Labs, the developer of the Lightning Network, announced the release of Taproot
Assets Protocol v 0.2, which avoids potential delays in transaction processing
due to congestion on the Bitcoin network.

The UK
Parliament has proposed regulating cryptocurrencies as gambling. Crypto assets
can potentially be used for fraud and money laundering, posing a high risk to
consumers and the economy.

Tether’s
issuance team has decided to invest up to 15% of its net profits in Bitcoin
monthly to diversify its reserves. It has already invested $1.5 billion in BTC.
The bulk of USDT’s collateral is still in short-term US Treasuries.

According to
a Bloomberg survey, only 31 of the top 60 cryptocurrency companies have
successfully undergone external financial audits or confirmed reserves. Many
auditors are reluctant to work with cryptocurrency companies or need more
expertise.

This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.

This article was written by FxPro FXPro at www.forexlive.com.

On the daily chart below for the S&P
500, we can see that the price action remains rangebound just beneath the 4175
level. This has been a really strong resistance and we can expect some quick
rally once the price breaks out decisively with buyers jumping in aggressively
and sellers folding fast.

Overall, the market hasn’t done
much since April as we’ve just been bouncing up and down between the 4175
resistance and the 4061 support. This is the type of market that
chops out many traders that suffer from impatience. At the moment, it’s a
waiting game until we get a clear breakout supported by a fundamental catalyst.

In the 4
hour chart below, we can see that we have an even tighter range between the
4175 resistance and the 4120 support. Such compressions generally lead to big
moves once the market breaks out. The big spike yesterday was due to positive
news on the debt ceiling front, but it’s more likely that in case of a deal
we get a “sell the fact” reaction rather than a rally. The risk events to watch next are the US Jobless Claims
today and Fed Chair Powell speech tomorrow.

In the 1
hour chart below, we can see more closely the tight range we’ve been stuck into
since the start of May. A break above the 4175 level should lead to a quick
rally into the 4206 high. That will be the last line of defence for the sellers
as a break beyond that will lead to further upside into the 4300 area. On the
downside, the sellers may lean again on the 4175 resistance and target the 4120
support first, and 4061 support next. Keep close eye on these levels.

This article was written by ForexLive at www.forexlive.com.

On the daily chart below for
EURUSD, we can see that the market has finally turned around and the trend has
now changed. The multiple failures to break above the 1.1033 high were
significant and once the price fell below the red long period moving
average, the sellers started to pile in aggressively, eventually pushing the
price much lower.

The moving averages have now
crossed to the downside in a further confirmation that we are in a downtrend.
We could also have a major double
top pattern
with the neckline at 1.0533. The first support for the buyers should be at the
1.0750 level, where we may see the first deeper pullback after such a quick
selloff.

EURUSD
technical analysis

On the 4 hour chart below, we can
see that the market was trading within a rising channel diverging with the MACD. This is generally a sign of
weakening momentum and it’s often followed by pullbacks or reversals. The
divergent rally into the 1.1033 high was in fact meaningful as the rally
stalled there and started to range until we eventually got a breakdown. The
moving averages are acting as resistance for the current downtrend and the
sellers should keep on leaning on them until the 1.0750 support.

On the 1 hour chart below, we can
see that the price has recently pulled back into the 1.0845 resistance before
falling again towards the 1.0810 low. The sellers should pile in more heavily
once the price breaks below the low, targeting the 1.0750 support. It’s worth
noticing that the price has started to diverge with the MACD, and we are
getting closer to the key support.

This may be a sign that we are
about to see a deeper pullback to the upside before the next selloff. The
buyers, on the other hand, should be waiting at that 1.0750 support to target a
rally towards the 1.09 handle or wait for the price to break above the
trendline before piling in.

This article was written by ForexLive at www.forexlive.com.