KEYTAKEAWAYS
- Investor Behavior: Bank of America reports a $600 million withdrawal from crypto funds, the largest since June 2022, indicating heightened investor caution.
- Market Dynamics: JPMorgan notes a retail-driven sell-off in cryptocurrencies, with Bitcoin experiencing a sharp 16% decline in April.
- Technical Analysis: 10x Research suggests a possible false breakdown in Bitcoin’s price, revisiting their strategy at a pivotal $68,300 threshold.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
INVESTOR WITHDRAWALS PEAK AT BANK OF AMERICA
Bank of America has observed a significant movement in the cryptocurrency space, with investors pulling out $600 million from crypto funds over the past week, marking the largest withdrawal since June 2022. This trend underscores the growing caution among investors amidst market volatility.
RETAIL-DRIVEN SELL-OFFS NOTED BY JPMORGAN
JPMorgan’s recent analysis highlights that the sharp downturn in the cryptocurrency market has been predominantly driven by retail investors. The bank maintains a cautious stance as Bitcoin experienced its largest monthly decline since June 2022, falling 16% in April. The market faces challenges such as increased margin positions which could exacerbate volatility.
10X RESEARCH FORECASTS POTENTIAL FALSE BREAKDOWN IN BITCOIN
According to 10x Research, Bitcoin might see a false breakdown following a period of triangular consolidation, similar to patterns observed since early 2023. The firm is reevaluating its bull-bear threshold, previously set at $68,300. Earlier in March, CEO Markus Thielen also stated that if Bitcoin stabilizes at $68,330, it could form a technical base for a potential surge to new highs, forecasting a run towards $83,000 or even up to $100,000.
US LABOR MARKET SHOWS SIGNS OF COOLING
The US Department of Labor reported a slowdown in job growth and a surprise increase in the unemployment rate for April, signaling a cooling labor market after strong growth earlier in the year. Non-farm employment rose by only 175,000, the smallest increase in six months, with the unemployment rate rising to 3.9%.
CRYPTO TRADING INSIGHTS
Despite the broader economic slowdown, Bitcoin has managed to recover losses from late April, pushing back above the $60,000 mark with minimal market pressure. Short-term support levels for Bitcoin are suggested at $61,500 to $60,500.
Investors might consider these price levels as potential entry points for altcoins, based on current market conditions.
- ETH: Around $3,100
- SOL: Around $140
- BNB: Around $580
- BCH: Around $460
- DOGE: Around $0.15
- PEPE: Around $0.000008
- WLD: Around $5.10
