Bitcoin crosses $44,000 resistance

Most major cryptocurrencies have been on a bullish trend this week. Crypto bulls prevailed in late trading on Wednesday causing cryptocurrency prices to skyrocket.

Bitcoin crossed the key $44,000 resistance level on Wednesday, rising to $44,300. If BTC price declines, further support can be found at $41,800, while resistance may be encountered near $45,000. 

Ethereum price also surged on Wednesday, climbing to the $2,450 level.  If Ethereum's price declines, it may encounter support near $2,230, while if it increases, resistance may be encountered near $2,500.

The Fed kept interest rates unchanged last week, within a target range of 5.25% to 5.50%. The Fed, however, has removed the tightening bias from its policy statement, indicating that the central bank is preparing to pivot to a less restrictive monetary policy. 

Powell delivered a hawkish interview on CBS’s show ’60 Minutes’ on Sunday, putting pressure on cryptocurrency prices. Powell stated that the Fed will only proceed with interest rate cuts once they see evidence that inflation is dropping sustainably. Powell reiterated his former statement that a rate cut in March is improbable and warned that the central bank will likely cut rates at a slower pace than the market expects. 

The approval of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) caused cryptocurrency prices to surge over the past few weeks. The SEC finally approved 11 applications but the enthusiasm over the approvals of Bitcoin spot ETFs is fading. Expectations of approval of Ethereum spot ETFs boosted Ethereum price on Tuesday. The SEC is not expected to decide on the fate of Ethereum spot ETFs before May, but a report by Standard Chartered Bank on Tuesday raised expectations of approval in the future.

Markets are under pressure by increased risk-aversion sentiment caused by rising geopolitical tensions. Concerns that the Geopolitical crisis in the Gaza area may spread to neighboring countries drive risk sentiment down putting pressure on risk assets. The US and the UK have launched a coordinated action against Houthi rebels in Yemen. The US launched airstrikes on Friday and over the weekend against Iranian forces in retaliation for the previous week’s drone strikes against US troops. US Secretary of State Antony Blinken is starting another tour in the Middle East, aiming to ease regional tensions.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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