Bitcoin, Ethereum Technical Analysis: BTC, ETH Start the Week Lower, as Market Volatility Remains High

Cryptocurrency markets consolidated to start the week, with bitcoin trading below the $27,000 mark during today's session. Volatility has been significantly higher in the past few days, as the unemployment rate in the United States surged to a multi-month high.

Timeline of Bitcoin, Ethereum

Detroit-based Benzinga, a media and data provider bridging the gap between retail and institutional investors, sent its team to Miami, Florida, for Bitcoin 2023. During the event, Benzinga sought to recognize the innovation in digital assets broadly and spoke with founders, officials and investors in various crypto-related companies.

Quick Take The Federal Reserve's actions, specifically its interest rate decisions, serve as an external catalyst that influences Bitcoin's price movements, as noted by Swissblock. The recent Nasdaq and NVIDIA rallies have not significantly affected the cryptocurrency market, but Swissblock has observed that the fluctuating likelihood of interest rate hikes has impacted Bitcoin's price movements.

Ethereum (ETH) price has traded above $1,750 since May 12, 2023, making a series of higher lows along the way. With ETH price volatility rising in the past week, can the bulls push the rally into a new gear to break above the critical $2,000 milestone?

Bitcoin Price Analysis: The Bitcoin price witnessed a bearish reversal from the resistance trendline of the channel pattern on May 29th, indicating the buyers are not yet ready to start a recovery rally. From the reversal point, the BTC price plunged 5% over the week and currently exchange hands at $26749.

Google search interest for cryptocurrency-related terms, including "crypto," has been on the decline for the past two months, reaching levels not seen since late 2020. What Happened: Google Trends data shows that the term "crypto" currently has a score of 17, indicating a substantial drop in search volume.

The latest price moves in bitcoin (BTC) and crypto markets in context for June 5, 2023. First Mover is CoinDesk's daily newsletter that contextualizes the latest actions in the crypto markets.

Since last Friday's wMarket report, the cryptocurrency market saw net outflows of $17 billion and currently stands at $1.13 trillion — down 1.54%. The market capitalizations of Bitcoin (BTC) and Ethereum (ETH) plunged 1.74% and 1.99% to $518.99 billion and $224.63 billion, respectively.

Ethereum faces congestion for validators to enter and begin staking in the protocol. According to data from Wenmerge, an information dashboard, more than 90,000 validators are waiting to provide protocol validation services on Ethereum. This means a validator entering the queue today must wait more than 46 days to be activated and begin its tasks.

In an eventful month overshadowed by macroeconomic uncertainties, Bitcoin experienced an 8.0% decline. However, despite this setback, the network's activity remained remarkably robust, marking the fifth consecutive month of growth.

The cryptocurrency market is once again experiencing a decline as the price of Bitcoin faces significant bearish pressure. Following its yearly peak of $31,170, Bitcoin has entered a retracement phase, resulting in setbacks and causing concerns among investors.