Renewed risk appetite early on Tuesday boosted riskier assets, such as cryptocurrencies, against the safe-haven dollar. Robust US economic data later in the day though, increased expectations of a steep rate hike on Wednesday, bolstering the dollar. Volatility was low on Tuesday, as markets are poised to react to the approaching Fed meeting, which will likely affect stock markets and crypto markets considerably.
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 high market volatility and affect cryptocurrency direction.
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 Tuesday, fluctuating around the $20,500 level. 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 Tuesday, trading near $1,570. 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
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