Bitcoin's Growth Slows, Altcoins Drive Rebound as Institutions Favor Ethereum
Bitcoin's short-term trend channel hints at a slow start in growth, with support at $104,000. Options market signals defensive positioning, with an increase in open Put contracts. Meanwhile, Bitcoin has broken out of its medium- to long-term upward trend channel, potentially setting the stage for a downward reaction.
Technical analysis charts indicate a buy signal, but sell signals have increased. InvestTech's overall algorithmic analysis suggests maintaining positions with low liquidity risk and medium volatility risk. Market momentum remains fragile, but altcoins are driving the latest rebound. Institutional demand is becoming more selective within crypto allocations, with growing interest in Ethereum. The data calendar highlights risks associated with risk assets due to Trump's trade wars. Bitcoin and Ethereum show a clear divergence in ETF flows, with Bitcoin seeing outflows and Ethereum inflows.
Cryptos are expected to keep the Federal Reserve on its toes later in June.
Bitcoin's initial growth rate is expected to slow down shortly, with potential for a downward reaction. Defensive positioning is evident in the options market. While market momentum remains fragile, altcoins are driving the latest rebound. Institutional demand is shifting towards Ethereum. Cryptos are set to influence the Federal Reserve's stance later this month.
