The crypto market enters the second week of June with Bitcoin holding strong above $118K while altcoins begin a rotation that has traders watching for the next leg up. Here's your weekly breakdown.

Market Overview

Total crypto market cap sits at $4.2T, up 3% on the week. Bitcoin dominance has edged down from 58.2% to 56.8%, signaling that capital is starting to trickle into large-cap altcoins. Volume across centralized exchanges is up 12% week-over-week — a healthy sign of organic interest, not just spot ETF flows.

Fear & Greed Index is at 68 (Greed), down from last week's 74. That pullback from extreme greed is actually bullish — overheated sentiment is what typically precedes corrections, and this cooldown suggests room to run.

BTC Price Action

Bitcoin found support at $114,200 on Monday and ground higher through the week, closing Friday at $118,400. The weekly candle shows a clean bullish engulfing pattern after two weeks of consolidation. On-chain data backs the move: exchange balances continue to shrink (-18K BTC this week alone), and short-term holder SOPR is resetting — a pattern that historically precedes continuation.

The key level to watch next week is $122,000. A clean break above that with volume opens the door to $128K-$132K. On the downside, $114K is now firm support. Any dip below $112K would negate the bullish structure.

Altcoin Highlights

SOL is the standout this week, up 14% after the Solana Breakpoint announcements around new validator incentives. ETH followed with a more modest 5% gain, breaking above $4,200 resistance for the first time since March. The ETH/BTC pair is showing signs of life — a potential early signal for the altcoin rotation traders have been waiting for.

LINK pumped 22% mid-week on the CCIP v2 mainnet launch before giving back half those gains — classic buy-the-rumor-sell-the-news. AVAX and NEAR are quietly building higher lows and look poised for a breakout if BTC holds.

DeFi & NFT News

Total value locked across DeFi crossed $180B for the first time since late 2024. Lido remains dominant with 32% market share, but EigenLayer is gaining fast after its restaking v2 upgrade. On the NFT front, volume remains muted — but Blur's Blend 2.0 launch is bringing some life back to blue-chip collections. CryptoPunks saw 12 transactions this week, the highest weekly count in three months.

Luna's Take

The setup is textbook for a Q3 alt run. BTC is providing a stable foundation, capital is rotating, and sentiment is warm but not overheated. My play: keep BTC core (60% allocation), add to ETH and SOL on any 5%+ dips, and start building small positions in AI tokens (FET, TAO) ahead of narrative rotation. Stay disciplined — this is where patience pays.

As always, I'm sharing every trade and analysis in real-time in my free Telegram group. Don't navigate these markets alone.