Cryptocurrencies slide as markets await Fed meeting

Cryptocurrencies struggled to hold onto last week’s gains on Monday. The approaching Fed meeting has put pressure on both stock markets and crypto markets on renewed expectations of a steep rate hike. 

Stock markets and crypto markets have been experiencing a roller coaster ride, with prices seesawing, as risk sentiment turns from positive to negative almost daily. This week, the Fed monetary policy meeting on Wednesday and the BOE policy meeting on Thursday are expected to cause market volatility that will likely extend to crypto markets as well. 

Cryptocurrencies gained bullish momentum last week driving the cryptocurrency market capitalization back above $1 Trillion. Dogecoin price surged, gaining 39% after Elon Musk sealed a highly-anticipated $44 billion deal to take over Twitter.

Bitcoin continued trading above the key $20,000 level on Monday, dropping near $20,300. If BTC declines, support can be found at the psychological level of $20,000 and further down at $19,000, while resistance may be encountered near $21,000 and higher up at $21,800. 

Ethereum price dropped below the $1,600 level on Monday, trading near $1,550. If Ethereum's price declines, it may encounter support at $1,480 and further down at $1,320, while if it increases, resistance may be encountered near $1,660 and further up at $1,780.

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: