Bitcoin struggles to hold on to key $70,000 level

Bitcoin price regained the key $70,000 level on Monday but struggled to hold on to this level. If BTC price declines, support can be found at $66,400, while further resistance may be encountered at $72,000. 

Ethereum price dropped below the $3,900 level on Monday. If Ethereum's price declines, it may encounter support at $3,570; if it increases, resistance may be near $4,080.

Purchasing of spot BTC exchange-traded funds (ETF) has been on the rise boosting crypto markets. In addition, the US Securities and Exchange Commission (SEC) approved several spot Ethereum ETFs last week, boosting Ethereum price.

Cryptocurrency prices are affected by central banks’ interest rates. High interest rates restrict economic growth putting pressure on risk assets, while the promise of rate cuts boosts crypto markets.  Fed rate cut expectations are decreasing, placing pressure on cryptocurrency prices. 

The US Federal Reserve kept interest rates unchanged at its latest policy meeting within a target range of 5.25% to 5.50%. The Fed’s forward guidance was hawkish, indicating that interest rates will remain at high levels for longer. Odds of rate cuts are becoming more moderate, putting pressure on crypto markets, as policymakers have stated that they do not intend to start reducing interest rates until there is more evidence of disinflation.

Crypto markets have been under pressure by the escalation of hostilities between Israel and Iran. Fears that the war will spread in the Middle East are promoting a risk aversion sentiment putting pressure on risk assets such as cryptocurrencies.  

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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