Crypto market tumble seen as quick shakeout, traders expect ‘bullish’ rebound

Ciaran LyonsJun 08, 2024Crypto market tumble seen as quick shakeout, traders expect ‘bullish’ reboundCryptocurrency traders believe that the recent market downturn is just a “shakeout” and there is a “bullish continuation” on the horizon.17282 Total views22 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin, Ether and the broader altcoin market experienced a downturn after United States employment data exceeded expectations on June 7. However, traders believe it’s a brief “shakeout” before the upward trend continues.

“Strong sell-off into support. Alts suffered more,” pseudonymous crypto trader il Capo of Crypto declared to their 848,000 X followers on June 7. They added that it “looks like a shakeout,” which is when a large number of investors sell-off at the same time, usually due to market or economic uncertainty.

On the same day, the U.S. Employment Situation Summary Report revealed a higher-than-expected increase in jobs, contradicting crypto analysts’ predictions that a weaker employment report would put pressure on the decision to lower inflation, and Bitcoin (BTC) would hit new highs as a result.

“A weaker surprise could bring back rate cuts, and next week, we will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs,” 10x Research head of Research Markus Thielen stated on June 5.

Although the data is showing a different trend, Thielen doesn’t believe the employment report directly caused the crypto market drop. “Crypto sold off at the end of Friday without a determining catalyst,” he stated in a June 7 report viewed by Cointelegraph, while claiming that the data was “mixed:”“US employment data was mixed, with the unemployment rate climbing to 4.0% but an upside surprise in the number of jobs added. This was entirely due to an increase in part-time workers."Traders are watching key support levels closely

Total jobs in the U.S. increased by 272,000 jobs in May, while the unemployment rate increased by 0.1%, according to the U.S. Bureau of Labor Statistics. 

il Capo of Crypto explained if the key “support levels hold, we should see bullish continuation soon.”

Bitcoin fell 1.99% over the past 24 hours, dropping back down to $69,410. Ether (ETH) declined by 3.22%, while altcoins suffered even more significant losses; Pepe (PEPE) plunged 10.54%, Solana’s (SOL) dropped 4.89%, and Dogecoin (DOGE) tumbled 7.88%, according to CoinMarketCap data.Bitcoin is up 11.06% over the past 30 days. Source: CoinMarketCap

Other traders also commented that the market’s peak is far off and suggested looking at the market decline as a buying opportunity.

“The real bull market hasn’t even started yet,” pseudonymous crypto trader Kaleo claimed in a June 7 X post.

Related:Bitcoin ETF flows will send BTC price into ‘parabolic run,’ traders say

“Small dip just before the weekend, not what I expected but we ball anyway.” pseudonymous crypto trader Jelle wrote on the same day.

“Bought some dips for a quick turnaround trade,” added Jelle.

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