Stock markets edged higher on Wednesday, providing support for crypto markets. Cryptocurrency prices have been following stock market trends and the recent pressure on stocks has been transferred to cryptos.
A steep cryptocurrency selloff was triggered in the past few weeks, as bearish tendencies have prevailed in crypto markets. The crypto industry has been under pressure since the beginning of the year and the results are becoming apparent, with mounting layoffs in crypto firms and huge losses in trading volumes.
Global recession fears are promoting a risk-aversion sentiment, pushing cryptocurrency prices down. An increasing number of major Central Banks, such as the Fed and the BOE are moving towards a tighter fiscal policy to tame soaring inflation rates. Stalling economic growth combined with fiscal tightening gives rise to fears of recession, promoting a risk-aversion sentiment and putting pressure on cryptocurrencies.
On the other hand, many market participants are seeking opportunities to buy cryptocurrencies at low prices, in the expectation that they have reached the bottom. Bitcoin whales are buying the dip for major cryptocurrencies, preventing crypto markets from crashing.
Bitcoin has been falling below the $20,000 key level since last week, only to bounce back soon afterward. Bitcoin whales propped up the cryptocurrency again on Wednesday, as a bullish trend prevailed, keeping the cryptocurrency above the $20,000 level. If the Bitcoin price declines, support may be found at the $19,200 level, and further down at the psychological level of $15,000, while resistance may be found near $21,800 and $23,000.
Ethereum price also rose on Wednesday, climbing above $1,100. If Ethereum's price continues to decline, it may encounter support at the $1000 level, representing its lowest price since January 2021 and further down at the psychological level of $500, while resistance may be encountered at $1,280 and higher up at $2.000.
BTC/USD 1h Chart
ETH/USD 1h Chart
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