Cryptocurrency prices edge lower as the rally fades

Crypto markets gained strength in the past couple of weeks, with Bitcoin price reaching a nine-month peak. The recent banking crisis drove risk sentiment down, as global recession concerns were re-ignited. As, however, the traditional banking system faced problems, the appeal of cryptocurrencies became more apparent. Many investors have turned towards cryptocurrencies in the past few weeks, fearing a globalized meltdown in the banking system.

Reduced rate hike expectations boosted risk sentiment this week, providing support for cryptocurrency prices. The Federal Reserve raised interest rates by only 25 basis points at its meeting in March, bringing the benchmark interest rate to a target range of 4.75% to 5.00%. Market odds are currently split between another 25-basis point rate hike at the Fed’s next meeting in May, and a complete pause in rate hikes. 

News that the Commodity Futures Trading Commission (CFTC) is suing the largest crypto exchange in the world, Binance, halted the rally in cryptocurrency prices earlier this week though. The momentum driving the crypto market’s recent rally seems to have faded and cryptocurrency prices edged lower on Thursday.

Bitcoin price dropped below the $28,000 level on Thursday. If the BTC price declines, support can be found near $27,400, while resistance may be encountered near $29,000. 

Ethereum price also edged lower on Thursday, dropping to $1,860. If Ethereum's price declines, it may encounter support near $1,760, while if it increases, resistance may be encountered at $2,000.

Ethereum price had gone up this week as planned upgrades are due soon. The highly-anticipated Shanghai upgrade is going live on April 12th. This upgrade will enable the withdrawal of staked Ethereum from the blockchain network, effectively completing its transition to a proof of stake model. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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