Bitcoin Price Prediction: Cryptocurrency Plunges After “Roaring Kitty” YouTube Stream – Next Support Level?

June 8, 2024 · Crypto News, TGbot · Source:NewCoinSpot

Bitcoin Price Analysis

Bitcoin (BTC), the leading cryptocurrency, has experienced a significant decline, hitting a low of approximately $68,500. This downturn coincided with “Roaring Kitty’s” YouTube livestream, which failed to invigorate market sentiment.

Market Influences

The robust May Non-Farm Payroll (NFP) report, which added 272,000 jobs, further bolstered the US dollar. This news diminished expectations of a Federal Reserve rate cut, affecting Bitcoin price predictions and overall market sentiment. Ethereum (ETH) and other altcoins also saw declines, contributing to a 3% drop in the overall crypto market.

“Roaring Kitty” Livestream and Bitcoin Decline: Next Support Level?

Bitcoin (BTC) fell to an intraday low of $68,507, coinciding with “Roaring Kitty’s” YouTube stream.

Key Event:

  • Keith Gill: Known as “Roaring Kitty,” Gill hosted his first livestream in three years, drawing over 600,000 viewers.
  • Discussion Focus: GameStop (GME.N) future, jokes, memes, and investment risk disclaimers.

Stock Performance:

  • Pre-Stream: GameStop shares surged nearly 50% after Gill announced the stream.
  • Post-Stream: Shares fell nearly 40% following the announcement of a $3 billion stock sale plan, closing at $28.22 amid volatile trading.
  • Trading Volume: GameStop trading volume hit $10 billion, ranking just behind Nvidia and Apple.

The livestream failed to rekindle market enthusiasm, and the strong May NFP report, adding 272,000 jobs, further strengthened the dollar.

As a result, diminished expectations for a Federal Reserve rate cut impacted Bitcoin price forecasts and market sentiment.

Key Points:

  • Altcoin Impact: Ethereum (ETH) and other altcoins declined, leading to a 3% drop in the crypto market.
  • GameStop Influence: “Roaring Kitty” couldn’t reignite interest in GameStop (GME.N); shares fell nearly 40% post-announcement of the stock sale plan.
  • Market Volatility: GameStop’s decline underscores financial market volatility and speculation, potentially affecting cryptocurrency market sentiment.
  • Challenges and Volatility: Both cryptocurrency and traditional financial markets face ongoing challenges and volatility.

Strong US Employment Data Leads to Bitcoin Decline

Bitcoin’s decline is also attributed to robust US Non-Farm Payroll data, as investors reacted to better-than-expected employment figures.

These figures suggest a resilient labor market, potentially delaying the Federal Reserve’s rate cut decision.

As a result, the dollar’s value increased, dampening hopes for Bitcoin to reach an all-time high before the weekend.

Key Points:

  • US Labor Market: The US Department of Labor reported 272,000 new jobs in May, pushing the unemployment rate to 4.0%.
  • Impact on Rate Cut Expectations: Strong job growth reduced expectations for an imminent rate cut, impacting risk assets like cryptocurrencies, emerging market stocks, bonds, and commodities.
  • Overall Impact: Better-than-expected US employment data indicates a robust labor market, delaying the Federal Reserve’s rate cut and prompting investor caution, contributing to Bitcoin’s decline.

Bitcoin Price Prediction

Bitcoin is currently trading at $69,313, showing a slight increase of less than 0.10%. The key support level is at $68,550, a crucial point where market trends may shift, maintaining a bullish Bitcoin price outlook.

Above this support level, the outlook remains positive. Bitcoin could face selling pressure at resistance levels of $69,728, $70,643, and $71,961. On the downside, support levels at $67,570, $66,620, and $65,881 may attract potential buying interest.

The Relative Strength Index (RSI) stands at 41, indicating a neutral market stance without strong buy or sell pressures. The 50-day Exponential Moving Average (EMA) at $69,689 acts as a resistance point, suggesting Bitcoin may struggle to break through this level.

Conclusion

Bitcoin’s price movements are influenced by various factors, including strong US employment data and market reactions to key events like “Roaring Kitty’s” livestream. Investors should watch critical support and resistance levels and broader market conditions to make informed decisions.