BNB
The BNB cryptocurrency, the coin of the Binance exchange, grew by 18% in seven days, from May 31 to June 7. On June 6, the cryptocurrency set its new historical maximum, which is now equal to $725.6. It is worth noting: the whole week was spent in the green zone, with the exception of the last trading session on June 7.
Source: tradingview.com
Interestingly, BNB's historical high came in a week when former Binance CEO Changpeng Zhao was imprisoned for four months. The court ruled that the deadline begins on June 1. It would seem that this is not the best advertisement for BNB, but here's how it turned out. What was behind the coin's rise?
For example, the explosive growth of open interest (the number of open futures and options) in BNB. If on May 31 the figure was $580.33 million, then on June 6 it was already $1.1 billion. Thus, the open interest increased 1.89 times. The indicator has not been so high since the beginning of May 2021, that is, for more than three years.
Source: coinglass.com
Activity among decentralized applications (dApps) also contributed to the growth. BNB Chain was already the blockchain leader in terms of their total volume, and this week it added another 15. The Ethereum system, which is in second place, is 750 applications behind in this indicator.
Source: dappradar.com
According to technical analysis, BNB has broken through the upper boundary of the symmetrical triangle (indicated by pink lines). This is a bullish signal. In addition, the price is above the 50-day moving average (indicated in blue). Alarming factors include the entry of the RSI into the overbought zone and the beginning of a fall. Further growth is possible after overcoming the current historical maximum of $725.6. Support level = $645.
Source: tradingview.com
Bitcoin
Bitcoin grew by almost 5.5% in the week from May 31 to June 7, 2024. The largest cryptocurrency by capitalization is trading above $71,000 again. Five of the seven trading sessions for the week ended in positive territory.
Source: tradingview.com
June 6 The European Central Bank (ECB) reduced an interest rate of 25 basis points. This is not an ordinary event for the EU, as the previous decline took place five years ago. Earlier, on June 5, it became known that the Bank of Canada reduced the key rate increased from 5% to 4.75%. Such actions by regulators have caused an obvious positive for crypto investors. In addition, there is a belief that a rate cut in the United States is not far off. This means that people will be able to borrow more often.
BTC Growth Potential visible and analysts of the CryptoQuant platform. From their point of view, the big players (whales), which are now in a state of secondary accumulation, will play a big role. Nevertheless, the buying pressure is already being felt, and it will only intensify in the coming weeks.
Positive dynamics is also observed in spot ETFs for bitcoin. On June 5, the 17th consecutive day of money inflows into these exchange-traded funds was recorded. Such a successful series has been observed for the first time since January 2024, when, in fact, trading in BTC-ETF units began.
And another interesting information about spot bitcoin ETFs was shared by the Lookonchain analytical platform. Exchange-traded funds continue to accumulate bitcoins. This is especially true of the BlackRock Investment Company ETF (IBIT). The reserves in the wallets of this financial giant increased by 3,894 BTC ($276.18 million). Another giant, Fidelity, with the FBTC fund, added 5,378 BTC ($381.42 million) to its piggy bank. A total of nine exchange-traded funds increased their assets are worth 12,165 BTC ($862.79 million).
From the point of view of technical analysis, there is a predominance of bulls among bitcoin investors. This is confirmed by the indicators: the price is above the 50-day moving average (indicated in blue), the RSI indicator exceeds the 50 mark (62.71) and is growing. The support and resistance levels have not changed since last week: $65,513 and $73,794, respectively.
Source: tradingview.com
The fear and greed index increased by five points compared to last week. Now its value is 78. This indicates extreme greed among bitcoin investors.
Ethereum
The growth of the ether from May 31 to June 7, 2024 turned out to be symbolic – 1.5%. For seven days, the second largest cryptocurrency by capitalization unsuccessfully stormed the $3,900 mark. The maximum that was achieved was $3,887.9.
Source: tradingview.com
Despite the frankly weak price movements of ETH, a number of major players remain positive. The PricePredictions monitoring and forecasting platform, using artificial intelligence algorithms, estimated the value of ETH at the end of June 2024. points of view According to the site's specialists, the price of ether on June 30 will be $3,927.66. This is almost 3% higher than now.
VanEck went even further in its forecasts. They believe that under the basic scenario, the cost of ether by 2030 will be $ 22,000, that is, almost six times more than in 2024. Interestingly, the bullish forecast of the company is not at all assumes The cost of ETH at $154,000 is 40 times higher than at the beginning of June 2024.
Well, the head of the Securities and Exchange Commission (SEC), Gary Gensler, speculated on the approval of spot ETFs for ether. According to him opinion The process will take some time. It is obvious that the head of the SEC hints at agreeing on the conditions for the refusal of staking and the S-1 form, which all exchange-traded funds will be required to provide.
And on June 3, a very interesting one came out report, which was prepared by Christine Kim, Vice President of Development at Galaxy Digital. The expert claims that most decisions in Ethereum are made "off-chain". This process is usually implemented on Discord forums, GitHub, and so on. By Kim's opinion Off-grid solutions allow you to avoid centralization and preserve nuances that are difficult to verify and objectively evaluate.
If you believe the technical analysis, the ether has formed a sideways movement. At the same time, finding a price above the 50-day moving average (indicated in blue) is a bullish signal. Volatility has also decreased significantly over the past two weeks, which is confirmed by the drop in the ATR indicator. Support and resistance levels have remained unchanged since last week: $3,531 and $3,974.1, respectively.
Source: tradingview.com
Conclusion
Large cryptocurrencies grew in price during the week from May 31 to June 7. BNB performed the best, which not only added more than 17%, but also broke through its historical maximum. Against the background of this asset, the successes of BTC and ETH turned out to be more modest.
This material and the information in it do not constitute an individual or other investment recommendation. The editorial board's opinion may not coincide with the opinions of the author, analytical portals and experts.