Cryptocurrencies struggle to hold onto their gains

Cryptocurrency prices surged on Tuesday, amidst reports of Russia – Ukraine tensions easing. As Russia announced that it would pull back some of its troops from its borders with Ukraine, risk appetite grew, benefitting cryptos. On Wednesday, though, the US and NATO cast doubts on Russia’s claims of withdrawing troops and tensions rose again, putting pressure on cryptocurrencies. 

The global crackdown on cryptocurrencies was renewed this week, as the Financial Stability Board, which makes recommendations to the G20 nations on financial rules, advised policymakers on Wednesday to take swift action in drafting legislation covering the digital asset market as there is increasing affinity of crypto markets with traditional markets.

Bitcoin climbed to the $44,300 level on Tuesday, and traded below this level on Wednesday, testing this resistance level. If its price declines, it may find support at $40,000 and further down at $36,000 and $33,000. 

Ethereum rose above the $3,100 level, and might finally break its downtrend. If its price goes down, it may find support at $2,640 and further support around $2,150. In case its price goes up, it may find resistance at $3,400. 

Cryptos have been under pressure since the beginning of the year, with Bitcoin losing over 20% of its value, hit by a bout of risk-aversion. The bulls have attempted several times to reverse the downtrend, with little success so far. The recent volatility in stock markets, and especially the fall of tech stocks has been affecting crypto markets, which seem to have developed a strong dependency on stock market trends. 

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: