Bitcoin, Ethereum, and other major cryptocurrencies exhibited high volatility on Monday, amid the global stock market turmoil. Bitcoin tumbled to a six-month low on Monday, below $33,000 but recouped its losses later in the day. Tuesday was a comparatively quiet day for cryptos, even though stock markets continued on their wild ride.
Bitcoin exhibited low volatility on Tuesday and held on to Monday’s gains, trading sideways around the $36,600 level, but the outlook for the cryptocurrency is still bearish. If BTC continues its downtrend it may find support around $29,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300.
Similarly, Ethereum traded sideways around the $2,420 on Tuesday, close to Monday’s gains. In case its price goes up, it may find resistance around $3,220 and further up around $3,400, while if the downtrend continues, it may find support around $1,700.
The cryptocurrency market did not seem to be influenced greatly by the global stock market on Tuesday, and crypto prices exhibited some stability. With the highly-anticipated Fed meeting drawing close however, the question is how the crypto markets will react to the Fed’s announcements and whether cryptocurrencies can hold on to their gains in face of a tighter monetary policy. Cryptocurrencies have come under pressure the past few months amid expectations of a more hawkish monetary policy by the Fed and other major Central banks. Rising geopolitical tensions and soaring inflation rates also promote a risk-aversion sentiment, which doesn’t benefit the cryptocurrency market. Recent statements from regulatory bodies around the world about launching a crackdown on cryptocurrencies are also reducing the appeal of cryptocurrencies.
BTC/USD 1h Chart
ETH/USD 1h Chart
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