Cryptocurrencies precarious as risk-aversion grows

Crypto bulls seemed to be winning at the start of last week, with the price of most major cryptos rising. Cryptocurrencies dipped at the end of last week though, as mounting geopolitical tensions drove risk-assets down. A Russian attack against Ukraine seems imminent, putting pressure on crypto markets.

Bitcoin traded sideways on Monday, near the $42,200 level. If its price declines, it may find support at $40,000 and further down at $36,000 and $33,000, while if the price of Bitcoin goes up, it may find resistance near $44,300. Ethereum traded around the $2,800 level on Monday. If its price goes down, it may find support at $2,640 and further support around $2,150. In case its price goes up, it may find resistance at $3,000 and higher up around $3,400. 

Cryptos have been under pressure since the beginning of the year, with Bitcoin losing over 20% of its value, hit by a bout of risk-aversion. The bulls have attempted several times to reverse the downtrend, with little success so far. The recent volatility in stock markets, and especially the fall of tech-stocks has been affecting crypto markets, which seem to have developed a strong dependency on stock market trends. Expectations that major Central Banks will raise their benchmark interest rates and move towards a more hawkish policy have also been driving the price of cryptos down.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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