Bitcoin rally stops as Fed confirms plans of a rate hike

Bitcoin and Ethereum prices had started to rise at the beginning of the week, after falling heavily last week. The Federal Reserve’s plans of a tighter monetary policy have halted crypto’s advances though. Bitcoin fell as low as $35,460 on Thursday and is still trading close to that level. If it continues its downtrend, it may find support around $33,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300.

Ethereum fell below $2,400 and if the downtrend continues, it may find support around $2,150 and further down at $1,700. In case its price goes up, it may find resistance around $3,220 and further up around $3,400.

Recent statements from regulatory bodies around the world about launching a crackdown on cryptocurrencies are also reducing the appeal of cryptocurrencies. On Monday, the Monetary Authority of Singapore published a set of guidelines that restrict cryptocurrency marketing and advertising, becoming the latest in a number of countries such as Italy, Spain, and the UK, to propose restrictions on mining and advertising, putting pressure on cryptocurrencies. Russia’s Central Bank had also proposed banning the use and mining of cryptocurrencies on Russian territory, but Russian President Vladimir Putin spoke in favour of cryptocurrencies on Wednesday. Putin backed cryptocurrencies, stating that Russia has competitive advantages in crypto mining given the low cost of electricity and the trained personnel available in the country.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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