Cryptocurrencies Experience Downturn, Bitcoin Leads the Decline
Cryptocurrencies are broadly down on Friday, mirroring Bitcoin’s (BTC) performance. After a surge to $110,530 on Thursday, the leading cryptocurrency by market capitalization has retreated, trading around $108,964 at the time of reporting.
Layer-1 tokens Sui (SUI) and Sei (SEI) are also in the red, hovering around $2.93 and $0.26, respectively. Despite strong fundamentals, such as Sui’s Total Value Locked (TVL) in Decentralized Finance (DeFi) currently standing at $1.84 billion, key technical indicators suggest a bearish trend that could keep prices suppressed heading into the weekend.
Market Overview: Bitcoin’s Influence on Risk Sentiment
Bitcoin’s rally to $110,530 can be attributed to institutional interest and a robust derivatives market. According to QCP Capital, listed corporations are continuing to allocate funds to Bitcoin, as evidenced by recent filings from Strategy, Metaplanet, and Anthony Pompliano’s ProCap BTC LLC.
Spot Bitcoin Exchange Traded Funds (ETFs) saw a total daily net inflow of approximately $602 million on Thursday, up from $408 million on Wednesday. The 12 ETFs operating in the United States (U.S.) boast a cumulative net inflow of roughly $49.6 billion, with net assets totaling $138 billion.
The pullback below $109,000 suggests potential profit-taking amid growing macroeconomic uncertainty, as the 90-day deadline for U.S. President Donald Trump’s tariff pause approaches on July 9.
Technically, Bitcoin’s structure remains bullish, supported above the recently broken descending trendline. A buy signal from the Moving Average Convergence Divergence (MACD) indicator, sustained since June 26, could further boost risk sentiment.
If traders increase their exposure, a recovery could materialize, potentially pushing Bitcoin closer to its all-time high. However, a prolonged decline below the trendline cannot be ruled out. Therefore, traders may want to prepare for tentative support around $106,500, which was tested on June 26, and the 50-day Exponential Moving Average (EMA) at $104,730.
Altcoin Update: Sui and Sei Face Potential for Further Declines
Sui’s price is around $2.93 at the time of writing, down 3% on the day. The Layer-1 token, designed to provide a secure, robust, and scalable development environment, is currently trading below key moving averages, including the 100-day EMA at $3.08, the 50-day EMA at $3.03, and the 200-day EMA at $3.01.
The minor pullback from Thursday’s highs of $3.08 could evolve into a full-blown downtrend if the Relative Strength Index (RSI) falls below the midline and extends into oversold territory.
A retest of the upper limit of the descending channel could provide much-needed liquidity to stabilize the recovery. However, a potential drop to previously tested support areas at $2.55 on June 22, $2.29 on June 22, and $1.70 on April 1 cannot be ruled out.
Still, risk appetite for SUI could persist with the MACD indicator maintaining a buy signal, as indicated by the blue line crossing above the red line on Saturday.
If Sui breaks the resistance imposed by the moving averages on the daily chart, the path of least resistance could shift upwards, with targets at $3.30 and $4.00.
As for Sei, sellers currently have the upper hand, extending the decline by more than 3% on the day and nearly 22% from June highs at $0.33. The path of least resistance appears to be downward, with the MACD indicator poised to validate a sell signal.
Traders will be watching for the MACD’s blue line to cross below the red signal line, indicating bearish momentum. If they reduce exposure, selling pressure could intensify, increasing the risk of Sei falling to seek support at a confluence established by the 50-day EMA and the 100-day EMA at $0.23.
On the other hand, the 200-day EMA provides immediate support at $0.26, which could help stabilize the price in the coming sessions. Key areas of interest in case of a recovery include $0.29, which was tested as resistance on Thursday and limited the price in late February, as well as the June peak of $0.33.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
