Bitcoin has shed 1.5% of its value in the last 24 hours, with the crypto down by over 15% over the past week. As expected, this has affected the altcoin market’s sentiment negatively, with its capitalization falling by 9.7% in a week.
According to Glassnode, the memecoin sector fell by 10% too. Altcoins, especially weak ones with a lack of demand or narrative, can continue to bleed against Bitcoin even if the latter turns its own trend around.
Siren [SIREN], for its part, lost 12% in 24 hours. Its daily trading volume declined by 40%, with Open Interest falling by 17% in a day too – Both hinted at sidelined market participants and low appetite for risk-taking.
In a previous report, AMBCrypto had contemplated if the temporary price spike on Thursday, 04 June, could become a bullish reversal. At the time, a flip of the $1.13 resistance was needed to confirm a long-term trend reversal.
As Bitcoin inched closer to the $60K-mark though, sentiment increasingly turned fearful. This has since already influenced SIREN’s price action.
SIREN bulls turned away from a fair value gap
The drop to $0.131 in April shifted the 1-day SIREN structure bearishly. A sizeable relief rally peaked in May and reversed quickly. A large fair value gap (white) was left on this timeframe.
It stretched from $0.956 to $0.588. Some technical analysts like to use the mid-point of such a gap as S/R. In this instance, SIREN reacted bearishly from the mid-point of the FVG.
Traders’ call to action – Sell
The former local high at $0.672 (orange) was flipped to support in the last 36 hours, but the bulls were not able to defend it for long. In fact, the altcoin’s price action at press time showcased SIREN’s slump back below this level.
Combined with the higher timeframe structure, the rejection from the FVG’s midpoint, as well as the bearish pressure piling on Bitcoin, it would seem that SIREN will fall towards the $0.575 and $0.48 local support levels next.
Final Summary
- Relentless selling pressure on Bitcoin has negatively affected altcoins.
- SIREN rallied briefly on Thursday, 04 June, but the bulls were immediately rebuffed.
