A sudden drop hit the crypto market yesterday, and traders anticipate it as a shakeout before the bullish momentum.
The United States employment data crossed the expected line on June 7, resulting in the bleed of most of the coins, including Bitcoin, Ethereum, and other altcoins. The sudden deep correction experienced by the crypto market is considered a pause in the continuation of the bullish run.
“Strong sell-off into support. Alts suffered more,” il Capo of Crypto posted on X while talking to his followers. They further explained it by stating, “looks like a shakeout.” It usually happens when a large number of investors sell out their digital assets at the same time.
The U.S. jobs report showed more job growth than expected on the same day. This went against crypto analysts’ predictions that a weaker jobs report would push for lower inflation and cause Bitcoin to reach new highs.
“A weaker surprise could bring back rate cuts, and next week, we will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs,” Markus Thielen, head of 10X Research, stated on June 5.
Thielen does not believe that the employment data can directly impact the crypto market, even after witnessing an increasing trend in the employment data. Crypto sold off at the end of Friday without a determining catalyst,” posted on June 7.
“US employment data was mixed, with the unemployment rate climbing to 4.0% but an upside surprise in the number of jobs added. This was entirely due to an increase in part-time workers.”
Crypto Prices Fall Slightly; Analysts Predict Bullish Turnaround
A report shared by the U.S. Bureau of Labor Statistics concluded that in May the total number of jobs increased by 272,000, and the unemployment rate increased by 0.1%
il Capo of Crypto further predicts by stating, that if the key “support levels hold, we should see bullish continuation soon.”
As per the CoinMarketCap data, the price of Bitcoin dropped by 2.53%, trading at a mark of $69,425, Ethereum also experienced a drop of 2.83%, trading at $3,706, other altcoins like Doge, WIF, and SOL dropped their price by 7.81%, 13.91%, and 5.01%, respectively.
Bitcoin shows a positive trend in a 30-day chart Source: CoinMarketCap
Most traders comment on this drop as a buying opportunity because this bull run will last long.
“The real bull market hasn’t even started yet,” crypto trader Kaleo claimed in a June 7 X post.
“Small dip just before the weekend, not what I expected but we ball anyway.” crypto trader Jelle posted on the same day.
“Bought some dips for a quick turnaround trade,” Jelle said.
