Cryptocurrency prices were volatile on Wednesday, climbing early in the day, but paring most of their gains later on. Stock markets were also volatile on Wednesday, affecting cryptocurrency prices, as crypto markets have been following stock market trends.
Cryptocurrency bulls are fighting to regain some of the lost ground, with many traders optimistic that the bear market may be finally over. The total market capitalization of cryptocurrency has returned to levels above $1 trillion, after remaining below this key level for approximately a month.
Global recession fears are promoting a risk-aversion sentiment pushing cryptocurrency prices down, however. An increasing number of major Central Banks are moving towards a tighter fiscal policy to tame soaring inflation rates. A Fed rate hike of at least 75 bps this month is priced in by markets, putting pressure on crypto markets. An increasing number of major Central Banks are moving towards a tighter fiscal policy. The ECB expected to raise its interest rate by at least 25 bps on Thursday, which may push gold prices further down. The BOE is also moving in a more hawkish direction, reportedly considering a rate hike of up to 50 bps.
Bitcoin price traded above the $23,000 resistance level on Wednesday. If Bitcoin price declines, support may be found at the $19,200 level and further down at the psychological level of $15,000, while further resistance may be found near $31,500.
Ethereum remained above the $1,500 level on Wednesday. If Ethereum's price declines, 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 $2.000.
Ethereum price skyrocketed during the weekend, following an announcement from the Ethereum Foundation that the much-anticipated ‘merge’ was set to launch on September 19th. The Merge from the Proof-of-Work to the Proof-of-Stake method will be a significant network upgrade that is expected to lead to an increase in demand for Ethereum.
BTC/USD 1h Chart
ETH/USD 1h Chart
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