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Bitcoin selloff halted on improved risk sentiment

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Written by:
Myrsini Giannouli

10 May 2023
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Cryptocurrency selloff was halted on Tuesday on improved risk sentiment. Risk sentiment fluctuates, as banking sector woes raise recession concerns. The recent banking crisis has undermined trust in the banking system, raising the appeal of investing in less conventional assets, such as cryptocurrencies. Many investors have turned towards cryptocurrencies fearing a globalised meltdown in the banking system. Renewed concerns about a banking sector meltdown, however, have caused turbulence in crypto markets. 

Signs that major central banks are starting to wind down their hiking cycles provide support for risk assets. The Federal Reserve raised interest rates by 25 basis points at its monetary policy meeting last week, bringing the benchmark interest rate to a 16-year high target range of 5.00% to 5.25%. The US Central Bank has signaled that its hawkish policy is coming to an end, boosting risk assets.

Bitcoin price remained steady on Tuesday, oscillating around the $27,500 level. If the BTC price declines, support can be found near $27,000, while resistance may be encountered near $30,000. 

Ethereum traded sideways on Tuesday around the $1,850 level. If Ethereum's price declines, it may encounter support near $1,800, while if it increases, resistance may be encountered at $2,017.

BTC/USD 1h Chart

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr chart

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Written by:
Myrsini Giannouli

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