In brief
- Technical indicators are flashing signs of a crypto market in rebound mode.
- Bitcoin was heading towards a death cross and now… isn’t.
- Ethereum is hanging in there despite bearish signs, and Fartcoin is doing meme coin things.
Technical analysis of crypto assets can be hard—but we’re here to try and make it a little easier for you. Today, we’re starting with a near-death-cross experience for Bitcoin, Ethereum finding its footing despite bearish signals, and Fartcoin (yes, Fartcoin) showing strength among alts.
Let’s get into it:
Cryptocurrency markets showed signs of life Monday after a prolonged 13-day correction that tested investor resolve. The total crypto market capitalization rose 1.72% over 24 hours to $3.37 trillion, getting closer to the peak reached in late May when traders took the crypto market to $3.52 trillion.
Traditional equity markets provided a supportive backdrop. The S&P 500 closed Friday around 6,000, gaining 0.55% for the week and nearing all-time highs, continuing its slow recovery after April’s crash. The Nasdaq Composite advanced 0.34% to 19,674.07, maintaining its position near record territory despite lingering inflation concerns and Federal Reserve uncertainty.
The Fear & Greed Index, which as the name implies measures investor sentiment based on how fearful or greedy they might be acting, stood at 62 points, placing market sentiment in slightly bullish territory after weeks of extreme readings.
Bitcoin’s technical recovery takes shape
Bitcoin is trading at $108,313 on Monday, stabilizing after shedding nearly 10% during its recent correction. The cryptocurrency’s technical structure revealed multiple bullish signals beneath the surface volatility.
The gap between the 50-day exponential moving average and the 200-day EMA has increased, which typically signals bullish momentum. Moving averages are basically the average price of an asset during a period of time, in this case the last 50 days and the last 200 days. The bigger the gap, the stronger the market phase is. This confirms a medium-term bullish outlook that was able to avoid a death cross in late May and makes it easier to see the short-term moving averages as a good price support zone—if prices go down, it would be a bit hard for them to crash below $100K, which is where the current EMA line is.
Bitcoin’s Volume Profile Visible Range, often abbreviated as “VPVR,” highlighted a high-volume node between $92,000 and $96,000, establishing a critical support zone where significant trading occurred. This concentration of volume acts as a magnet for price, making it difficult for Bitcoin to fall below this range without substantial selling pressure.
Bitcoin’s Average Directional Index, or ADX, stands at 19, suggesting the previous downtrend is now weakening. ADX measures trend strength regardless of direction—readings below 25 indicate a weak trend while values above 25 signal strengthening momentum. The declining ADX can therefore be interpreted as exhaustion in selling pressure.
The Relative Strength Index, or RSI, for Bitcoin is at a neutral 58, sitting comfortably between oversold (below 30) and overbought (above 70) conditions. This positioning leaves room for upward movement without triggering technical sell signals that often accompany overheated markets.
For those into fundamentals, Bitcoin treasuries are all the rage right now: Paris-based Blockchain Group raised $340 million specifically to expand Bitcoin holdings, the company announced Monday, and Brazilian startup Meliuz announced a share offering to fund additional Bitcoin purchases for its treasury last week. They’re yet another sign that global firms are following Strategy’s playbook of accumulating BTC.
Ethereum shows resilience
Meanwhile, Ethereum is changing hands at $2,567, demonstrating strength after testing the psychologically important $2,500 support level. The second-largest cryptocurrency’s technical indicators show mixed signals, with basically everything depending on whether that zone remains a strong support or not.
The 50-200 EMA configuration shows the faster moving average below the slower one, typically a bearish signal. However, the narrowing gap between these averages suggests potential for a bullish crossover in the coming days. The recent price action above both moving averages negated the bearish implications of this “death cross” formation.
Ethereum’s ADX reading of 22 indicates the coin is basically stable, which also confirms what the RSI at 56—neutral territory with upward bias—shows. No buy or sell recommendations can be made based on technical analysis right now, at least for a short time frame.
Fartcoin’s momentum defies market gravity
Fartcoin rocketed 12.55% higher to $1.16, bringing its market capitalization to $1.12 billion and securing the 66th position among crypto peers in the market cap rankings. The meme token’s technical indicators flashed uniformly bullish signals.
The ADX spiked to 23, approaching the 25 threshold that confirms trend strength and the end of the bearish correction that took the price down 47% after reaching an all-time high on May 23. Rising ADX during price advances validates the move’s legitimacy rather than indicating a mere oversold bounce.
The Squeeze Momentum Indicator, which identifies periods of low volatility before explosive moves, showed the token breaking out of a prolonged squeeze (basically a volatility compression before a major price swing), with momentum bars turning green and expanding into a bullish impulse. This pattern typically precedes explosive moves as compressed volatility releases.
And the meme coin’s fundamentals? Coinbase announced the addition of Fartcoin to its asset roadmap on June 6, which continued to provide tailwinds. The coin’s actual listing on Coinbase, though, remains pending.
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