Cryptocurrency prices edge higher as stocks rally

Cryptocurrency prices plummeted last week, as global recession concerns drove riskier assets down. A steep cryptocurrency selloff was triggered, 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.

An increasing number of major Central Banks are moving towards a tighter fiscal policy to tame soaring inflation rates. Last week, the US Federal Reserve voted to raise its benchmark interest rate by 75 points and the BOE by 25 base points. Other major banks, such as the Bank of Switzerland and the Bank of Canada, are also raising their interest rates, halting the ascend of oil prices. Stalling economic growth, combined with fiscal tightening gives rise to fears of recession driving cryptocurrency prices down.

Cryptocurrency prices edged higher on Thursday though, as stocks rallied. Crypto markets have been known to follow the overall trends of stock markets and especially of tech stocks. Many market participants also decided to buy cryptocurrencies at their recent low prices, with expectations that they have reached the bottom.

Bitcoin price moved above the $20,000 key level on Thursday, reaching almost $21,000. 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's price was also on Thursday and is currently trading above the key of $1,100. If the Ethereum price continues to fall, support may be found near the psychological level of $500, while resistance may be encountered at $2,000 and higher up at $2.170.

BTC/USD 1h Chart

ETH/USD 1h 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: