Bitcoin touches 30,000 but bears fight back

Cryptocurrency prices exhibited high volatility on Wednesday, as risk sentiment remained uncertain. Bulls and bears fought to gain market control, creating instability in the market. Curve Finance exchange suffered a breach earlier in the week. Three liquidity pools were hacked from the exchange, leading to $70 million in damage. The damage was eventually contained, but exposed the industry’s vulnerability, dragging down crypto markets.

Bitcoin price spiked to $30,000 early on Wednesday but failed to maintain an uptrend, dropping back to $29,000. If the BTC price declines, support can be found near $28,600, while resistance may be encountered near $30,000. 

Ethereum price slipped on Wednesday, dropping to the $1,830 level. If Ethereum's price declines, it may encounter support near $1,815, while if it increases, resistance may be encountered near $1,880.

The U.S. Federal Reserve raised interest rates by 25 basis points last week after holding its interest rate steady at its June policy meeting. Fed officials raised the central bank’s interest rate to a target range of 5.25% to 5.50% last week, the highest level in 22 years putting pressure on crypto markets. Increases in central banks’ interest rates sour risk sentiment, driving risk assets down. 

The Fed’s message moving forward was ambiguous, aiming to give the central bank flexibility towards adjusting its future monetary policy and adopting a data-dependent approach. Crypto markets edged higher towards the end of last week but failed to maintain an uptrend. 

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: