The cryptocurrency market has been under pressure for the past few weeks, as Central Banks turn to a more hawkish monetary policy and stocks go down. Many investors feel that the following days will provide a turning point to the trend of major cryptocurrencies, since a big sell-off might see prices plummeting, but if the bulls prevail, they may manage to turn the tide. It is estimated that 30% of the BTC supply is currently held at a loss, which may put pressure on BTC holders to sell, although this position has been reversed in the past.
On Wednesday, there was high volatility in the price of Bitcoin and Ethereum. Rising yields in Germany and announcements of tighter regulations for cryptocurrencies, put pressure on the crypto market. The vice-chair of the European Securities and Markets Authority Erik Thedéen raised environmental concerns on crypto mining and is advocating a ban on the energy-intensive mode of cryptocurrency mining. In the UK, the Financial Conduct Authority advised on Wednesday that tighter rules should be enforced on crypto advertising, following the example of other countries, such as Spain and Italy. Later in the day, declining US yields bolstered BTC and ETH, which recouped their daily losses.
Bitcoin traded around the $41,800 level on Wednesday and Ethereum around $3,220. If the price of Bitcoin goes up, it may find resistance at $44,300, while if it declines, support may be found at the $41,000 level and further down at $40,000. Ethereum may find resistance around $3,400, while the psychological level of $3,000 may provide support if it falls.
BTC/USD 1h Chart
ETH/USD 1h Chart
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