Cryptocurrencies rally on renewed risk sentiment

Most major cryptocurrencies rallied on Monday on renewed risk sentiment. Stock markets also benefitted from the risk-on sentiment, propping up cryptocurrency prices. Risk sentiment remains uncertain, creating turbulence in stock markets and crypto markets alike. 

The US Fed recently raised its interest rate by 75 basis points, driving down crypto markets. Steep rate hikes increase global recession concerns, putting pressure on risk assets, such as cryptocurrencies. The EU, the UK, Switzerland, and Canada have also tightened their monetary policies recently. 

The bitcoin price rose above the $19,500 level on Monday. If BTC declines support can be found at $18,500 and further down at $17,600, while resistance may be encountered near $19,700. 

Bitcoin has been in a bear market almost continuously since last November, with its price registering a steep drop from an all-time high of over $68,000 in November 2021, to below $20,000 this month. Bitcoin ended the month with 3% losses. October however, has traditionally been a good month for the cryptocurrency, giving hope for the bulls to push on.

Ethereum price also rose on Monday, climbing above the $1,320 level. If the Ethereum price declines, it may encounter support at $1,255 and further down at the psychological level of $1,000. If the Ethereum price increases, resistance may be encountered near $1,407.

Ethereum price had been boosted in anticipation of the merge from the Proof-of-Work to the Proof-of-Stake method. The hype created around the merger had created a bullish sentiment for the cryptocurrency, which deflated following its completion, triggering a selloff.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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