Cryptocurrencies rally as bulls take over

Crypto bulls and bears are wrestling for control, causing volatility in cryptocurrency prices. The Securities and Exchange Commission filed 13 charges against Binance and its CEO, Changpeng Zhao, on Monday. News that the US regulator is formally moving against Binance put pressure on crypto markets on Monday. Crypto markets rallied on Tuesday after taking a hit on Monday.

Bitcoin recouped most of the week’s losses on Tuesday, climbing to $26,800 after plummeting on Monday. If BTC's price declines, support can be found near $25,400, while resistance may be encountered near $28,400.

The Ethereum price also recovered on Tuesday, rising to $1,880 after suffering heavy losses on Monday. If the Ethereum price declines, it may encounter support near $1,740, while if it increases, resistance may be encountered at $1,914.

US debt fears have been driving risk sentiment down over the past few weeks, putting pressure on cryptocurrencies. Risk sentiment fluctuates, causing volatility in risk assets such as cryptocurrencies.

US President Joe Biden and Republican House Speaker Kevin McCarthy have negotiated a deal that will raise the government's $31.4 trillion debt ceiling, preventing the US from going into default. The US Congress passed the deal to raise the US debt limit on Friday, and the US President signed the deal on Saturday. Increased risk sentiment provided support for cryptocurrencies.

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 latest monetary policy meeting, 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.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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