Choose country & language:

Bitcoin struggles to hold on to major support

Home >  Daily Market Digest >  Bitcoin struggles to hold on to major support

Written by:
Myrsini Giannouli

26 May 2022
Share the article

Cryptocurrencies struggled to rebound last week, with Bitcoin and Ethereum testing key psychological support levels. Bulls tried to push cryptocurrency prices higher but failed to overcome strong crypto market bearish tendencies, triggered by stock market uncertainty. This week, cryptocurrency prices failed to gain strength, with Bitcoin and Ethereum struggling to hold on to key support levels. 

A strong risk-off sentiment has prevailed over the past few months, driving investors to safer assets and dampening the appeal of cryptocurrencies. In the past six months, the cryptocurrency market has lost almost $2 trillion. 

Bitcoin and Ethereum climbed early on Wednesday but retreated later in the day. Most major cryptocurrencies were affected by stock market volatility, as crypto markets have been following the overall trends of stock markets and especially of tech stocks. 

Bitcoin fell again below the $30,000 level support on Wednesday, trading as low as $29,300. If Bitcoin price declines, support may be found near $26,700 and further down at $19,400, while resistance may be found at $40,000 and further up near $48,200. 

Similarly, Ethereum dropped below its $2,000 level support on Wednesday. If the Ethereum price declines, further support may be found near $1,700, while resistance may be encountered near $3,174.

The Fed has raised its benchmark interest rate by 50 base points, its highest rate hike in 22 years and the BOE also increased its interest rate by 25 bp. On Monday, ECB President Lagarde posted an uncharacteristically hawkish statement, pointing to rate hikes in Q3 of this year, which would bring the ECB’s interest rate at least to zero and possibly to positive territory. 

The shift of major central banks towards a more hawkish fiscal policy has been putting pressure on cryptocurrencies over the past few months. Most major Central Banks are turning towards a tighter policy and a return to pre-pandemic interest rates, driving cryptocurrency prices down. 

BTC/USD 1h Chart

BTCUSD 1hr chart


ETH/USD 1h Chart

ETHUSD 1hr 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:

Latest news

Dollar plummets in the aftermath of Silicon Valley collapse

Myrsini Giannouli 14 March 2023

Gold soars as investors turn toward safe-haven assets

Myrsini Giannouli 14 March 2023

Oil prices turbulent amidst market chaos

Myrsini Giannouli 14 March 2023

Crypto markets volatile after Silicon Valley Bank collapse

Myrsini Giannouli 14 March 2023

Why TopFX



industry presence
as a Liquidity Provider


from 0.0 pips

and reliable execution



client funds



customer support

Open your Live Account in 3 Steps
Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!