Bitcoin struggles to hold on to the $20,000 key level

An increasing number of major Central Banks, such as the Fed and the BOE, are moving towards a tighter fiscal policy to tame soaring inflation rates. Stalling economic growth combined with fiscal tightening gives rise to fears of recession, putting pressure on cryptocurrencies.

On Wednesday, Fed Chair Powell’s hawkish comments increased the odds of a sharp rate hike at the Fed’s next policy meeting, dragging cryptocurrency prices down.

Bitcoin struggled to hold on to the key $20,000 level on Wednesday, as the fight between crypto bears and bulls raged on. If Bitcoin price declines, support may be found at $19,200 and further down at the psychological level of $15,000, while resistance may be found near $23,000 and $32,300. 

Ethereum price also plummeted on Wednesday, falling below the $1,100 level. If the Ethereum price continues to fall, support may be found near the psychological level of $1000, while resistance may be encountered at $2,000 and higher up at $2.170.

A steep cryptocurrency selloff was triggered in the past few weeks, as bearish tendencies have prevailed in crypto markets. The crypto industry has been under pressure since the beginning of the year and the results are becoming apparent, with mounting layoffs in crypto firms and huge losses in trading volumes.

Many market participants have decided to buy cryptocurrencies at their recent low prices, however, with expectations that they have reached the bottom. Traders are buying the dip for major cryptocurrencies, preventing crypto markets from crashing. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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