By Michael Scott
Crypto traders are downplaying the recent market tumble and are optimistic that the slight shakeout cannot hinder the bullish rebound.
The traders reflected on the downturn experienced on Friday, June 7, when Bitcoin and Ether plunged alongside the broader altcoin market. The traders called the tumble a brief shakeout before resuming the upward trend.
Bullish Rebound Imminent Amid Slight Market Tumble
A reflection on the Friday tumble saw several pseudonymous crypto traders led by Il Capo of Crypto inform the 848,000 followers on X that altcoins bore the greatest suffering, though they offered strong sell-off support. The trader declared the incident as a shakeout witnessed when multiple investors sell off coincidentally, prompted by market and economic uncertainty.
The market plunge coincided with the US Employment Situation Summary Report reporting a higher-than-expected jobs increase. The data revealed a sharp contrast to the predictions by the crypto analysts, who anticipated a weaker employment report that would impose pressure on the decision to curb inflation, thereby propelling Bitcoin to new highs.
A 10X Research executive, Markus Thielen, stated on Wednesday, June 5, that a weaker surprise in the employment data would prompt a higher rate. The researcher indicated that if the CPI inflation would indicate 3.3% or lower, it would propel the Bitcoin and crypto prices to their all-time highs.
While the data shows a contrasting trend, Thielen downplays the argument that the employment report led to the crypto market plunge. Instead, the researcher indicates that the crypto sell-off witnessed on Friday lacks a determining catalyst.
Theilen indicates that the employment report captured mixed data with the US unemployment rate up by 4.0% and the surprise addition of jobs. The researcher attributes the latter to the increase in part-time engagements.
Traders Tracking Key Support Levels
An in-depth scrutiny of the employment report shows that the US had 272,000 job additions last month. The Bureau of Labor Statistics indicated that the unemployment rate rose by 0.1%.
Il Capo of Crypto indicated that the key support levels to hold were that the crypto market would witness a bullish continuation. Bitcoin declined by 1.99% to exchange hands below $69,500.
Ether replicated the market tumble with a 3.22% decline, though it was better than other altcoins. Memecoin Pepe suffered the greatest loss of 10.54%, ahead of Dogecoin, which declined by 7.88%, and Solana by 4.89%, as per CoinMarketCap data.
Most crypto traders weighed on the market’s performance to rule out that segment realized its peak. The traders consider the market decline as an opportunity to buy the dip since it is far off its peak.
A pseudonymous trader, Kaleo, revealed on Friday, June 7, on X that the real bull market is yet to start. The statement received instant backing from fellow trader Jelle, who acknowledged the slight dip, though surprisingly short-lived amid inevitable bullish rebound. The latter confirmed buying some dips and is eyeing a quick turnaround.
A reflection on the crypto market activity shows a mild 0.5% dip in the past 24 hours, restricting the global market to a $2.66 trillion capitalization. The entire daily trading volume is $110 billion, as per CoinGecko data.
Bitcoin dominance is estimated at 51.4%, while Ethereum is at 16.5%. Further analysis of the CoinGecko data shows Base Meme coins joined Polkadot ecosystem cryptos to realize the largest gain.