- The crypto market continues flashing red, with altcoins already down double-digits in the past two weeks.
- This bearish market outlook is likely to get exacerbated in the coming days due to Bitcoin.
- A drop in BTC below the $64,000 level could be a major driver of another crash.
Despite the start of Apple’s WWDC 2024 event, the crypto market has failed to react sufficiently. This development denotes the lack of interest among buyers and what’s next for the industry, especially if the outlook fails to improve.
Bitcoin’s grasp on altcoins
On June 7, Bitcoin (BTC) price dipped nearly 2%, causing many altcoins to shed close to double-digits, while some went overboard. Although BTC showed strength on Monday, it failed to sustain itself as sellers overwhelmed the buyers, leading to a brief visit at the $70,000 psychological level. As the pioneer crypto heads south, all eyes are fixated on the four-hour imbalance, extending from $64,733 to $62,984. This zone is key for sidelined buyers to accumulate BTC at a discount to give the uptrend another try.
The drop from the current level of $68,109 to the four-hour imbalance could stretch up to 7.60%. If such a move were to occur quickly, it could cause a further drop in open interest and liquidate millions of eager bulls.
BTC/USDT 4-hour chart
According to a June 7 filing with the US Securities and Exchange Commission (SEC), Nvidia Corp’s director, Coxe Tench, has sold off $119 million worth of NVDA shares. This transaction took place before the highly anticipated 10:1 stock split. But if this turns out to be a sell-the-news event, and NVDA starts to shed its market value from here, then investors can expect Artificial Intelligence (AI) altcoins to suffer.
The worst-case scenario would include both the aforementioned events occurring simultaneously. Either way, investors need to be cautious until BTC stabilizes or provides a directional bias.
