Cryptocurrency prices plummeted last week, as global recession concerns drove riskier assets down. This week, global stocks rallied, driving crypto markets higher.
A steep cryptocurrency selloff was triggered last week, 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.
Bitcoin price rallied on Tuesday, rising above the $20,000 key level, after falling below this level during the weekend for the first time in over two years. If Bitcoin price declines, support may be found at $19,200 and further down at the psychological level of $15,000, while resistance may be found near $32,300 and at $40,000.
Ethereum price also recovered slightly on Tuesday trading above the key $1,000 level and reaching above $1,100. If the Ethereum price falls again, further support may be found near the psychological level of $500, while resistance may be encountered at $2,000 and higher up at $2.170.
The shift of major central banks towards a more hawkish fiscal policy has been putting pressure on cryptocurrencies. Most major Central Banks are turning towards a tighter policy and a return to pre-pandemic interest rates, driving cryptocurrency prices down. Last week, the US Federal Reserve voted to raise its benchmark interest rate by 75 points and the BOE by 25 base points, putting pressure on cryptocurrencies.
Market sentiment has been fragile during the past couple of weeks, causing volatility in stock markets and cryptocurrencies alike. Crypto markets have been known to follow the overall trends of stock markets and especially of tech stocks. In addition, a strong risk-off sentiment has prevailed since the beginning of the year due to geopolitical tensions, driving investors to safer assets and dampening the appeal of cryptocurrencies.
BTC/USD 1h Chart
ETH/USD 1h Chart
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