Bitcoin climbs above $27,000 level

Crypto markets were volatile on Tuesday, with major cryptocurrency prices exhibiting high volatility as bears tried to wrestle back control from bulls. Bitcoin maintained some of its bullish momentum although Ethereum's price rose only marginally.

Bitcoin price climbed above the $27,000 level barrier on Tuesday. If BTC price declines, support can be found near $24,900, while resistance may be encountered near $28,100. 

Ethereum moved jerkily upwards on Tuesday, touching the $1,650 level. If Ethereum's price declines, it may encounter support near $1,600, while if it increases, resistance may be encountered near $1,700.

Several major central banks are holding their monetary policy meetings this week and this is expected to raise volatility in cryptocurrencies. The main event of the week is the Fed’s interest rate announcement on Wednesday. Even though it is widely anticipated that the Fed will keep interest rates stable this month, a lot is riding on the central bank’s forward guidance. A hawkish message may see crypto markets dipping once more. 

Increases in central banks’ interest rates sour risk sentiment, driving risk assets down. Most investors are anticipating a pause in rate hikes, but the US central bank has signaled that further tightening is possible if inflation does not go down consistently. 

Reports of a $3 billion sell-off by the FTX drove cryptocurrency prices down early last week. The bankrupt FTX exchange is holding $3.4 billion in crypto assets waiting to be liquidated. The impending liquidation of FTX will involve selling the assets in batches of $100-$200 million per week. The company received approval from the Delaware Bankruptcy Court to liquidate its assets last week. After the initial panic faded, however, markets took the news in stride.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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