The crypto market crashed on Friday June 13 as the war between Israel and Iran escalated. Bitcoin (BTC) dropped to $102,000 while Ethereum (ETH) dipped to $2,400 level as other altcoins followed through too. However, over the weekend, Bitcoin as well as other cryptocurrencies have been recovering. This recovery has pushed Bitcoin above $107,000 level on the day while Ethereum has climbed to $2,600. 

Following this recovery, the total crypto market cap has surged by over close to 2% over the last 24 hours. Crypto investors are thus eyeing continued momentum to push the crypto market higher. But what lies ahead for the crypto market this week? 

Total Crypto Market Cap Climbs by $64.4B

After crashing to $3.15 trillion last Friday, the crypto market is finally recovering. Over the last 24 hours, the total crypto market cap (TOTAL) has added $64.4 billion, as per data by TradingView. This marks a 1.96% surge pushing it to $3.3 trillion and signifying a recovering market. 

If the momentum holds, the total crypto market cap could surge further. However, strong resistance lies around the $3.39 trillion zone. Climbing past this resistance is crucial for the positive momentum to continue. With bulls now taking control of the market despite the ongoing war between Israel and Iran, this could open the door to a climb to $3.5 trillion. 

However, invalidation of the bullish momentum will occur if the TOTAL fails to breach the resistance. In such a case, the crypto market might drop towards the support at $3.2 trillion. A deeper dive would result in a crash to $3.09 trillion further wiping out the building investor confidence. 

Bitcoin Reclaims $107K with the RSI Pointing Higher 

Bitcoin recently dropped to $102K as investor confidence took a huge blow amid middle-east tensions. However, the king crypto has since shaken the dip and is now climbing towards achieving a new all-time high. TradingView data shows that Bitcoin is currently trading at $107,019, marking close to a 2% surge on the day. 

But, Bitcoin might not stop there as the Relative Strength Index (RSI) signals continued bullish momentum. The RSI of BTC has a value of 54.11 climbing from 53.38. While still lying close to the neutral point at 50, the current value shows that the momentum is flipping to the upside. 

Climbing past 60 could signify a BTC rally towards a new peak. BTC is currently facing resistance around the $109,000 price level. A climb past this level with strong backing by bulls could push BTC to a new all-time high. However, failure to push past resistance could result in a drop towards support around $104,700 level. 

Ethereum Climbs to $2.6K, Key Resistance at $2,750

Amid the crypto market recovery, Ethereum is also recovering well. ETH is trading at $2,622 as at press time according to the daily chart on TradingView. Short term resistance for Ethereum lies around $2,700 price level. Climbing past this level could push the price higher. 

However, according to top analyst Crypto Tony, the most important resistance for ETH lies at $2,750 price. As per his post on X, Tony believes that climbing past this level could open the door for a surge to $4,000. 

Failure to breach key resistance levels could result in a price drop to the support at $2,524. In case this level is breached, the next support lies at $2,412 price level. However, such a drop would dampen Ethereum investor sentiment. 

Crypto Market Players Eye FOMC Interest Rate Decision

This week, the main focus in terms of U.S economic data is the Federal Open Market Committee (FOMC) interest rate decision set for Wednesday June 18. The interest rate decision could influence short-term sentiment across the crypto market. In case the Fed delights with an interest rate cut, Bitcoin and altcoins will rally. 

However, the Fed could keep the interest rate unchanged despite last week’s US CPI inflation data showing that inflation increased in May. The data by the CME FedWatchTool shows that the probability for the Fed to keep the interest rate unchanged is 99.8%. 

Nevertheless, forward guidance for a rat cut will also be important to investors. Any dovish tone that will mean future rate cuts can also increase crypto optimism. If Fed chair Jerome Powell affirms that rate cuts might commence as early as in September, this will boost risk assets like Bitcoin.