Bitcoin regains $63,000 level

Bitcoin price gained strength on Thursday, rising to the $63,000 level. If BTC price declines, support can be found at $56,600, while resistance may be encountered near $65,500. 

Ethereum price also gained strength on Thursday, rising above the key $3,000 level. If Ethereum's price declines, it may encounter support at $2,800, while if it increases, resistance may be encountered near $3,220.

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. 

The crisis between Israel and Iran seems to have been diffused for the time being, however, and renewed risk sentiment propped up crypto markets this week. Ceasefire talks between Israel and Hamas continue, raising hopes of a truce. Peace talks between Israel and Hamas are reportedly progressing, despite ongoing military action by Israel on Hamas targets. A potential end to hostilities would improve risk sentiment further, boosting crypto markets.

Crypto markets plummeted after the Fed policy meeting last week. Cryptocurrency prices are affected by central banks’ interest rates. High interest rates are restricting economic growth putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. 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. 

Bitcoin recently reached a new all-time high of $73,800. Bitcoin’s bullish run has renewed interest in crypto markets, boosting other cryptocurrencies as well. Bitcoin underwent ‘halving’ last month. Every halving event cuts the rate at which new bitcoins are released into circulation in half, increasing the scarcity value of Bitcoin. This was the fourth halving event in the history of Bitcoin and markets have been anticipating the event for some time. The Bitcoin halving event, however, had already been priced in and Bitcoin price has been dropping since. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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