Bitcoin crushes as bears prevail

Market sentiment was uncertain on Monday, with bearish tendencies prevailing later in the day.  Global recession concerns have been driving riskier assets down, putting pressure on cryptocurrency prices. On Monday, reports that Russia has defaulted on its foreign debt pushed global stock markets down. Crypto markets have been known to follow the overall trends of stock markets and especially of tech stocks. 

Bitcoin price fell below the $21,000 level on Monday, struggling to hold on to the $20,000 key level. If Bitcoin price declines, support may be found at $19,200 and further down at the psychological level of $15,000, while resistance may be found near $23,000 and $32,300. 

Ethereum price also plummeted on Monday falling below the $1,200 level. If the Ethereum price continues to fall, support may be found near the psychological level of $500, while resistance may be encountered at $2,000 and higher up at $2.170.

A steep cryptocurrency selloff was triggered in the past few weeks, as bearish tendencies have prevailed in crypto markets. The crypto industry has been under pressure since the beginning of the year and the results are becoming apparent, with mounting layoffs in crypto firms and huge losses in trading volumes.

Many market participants have decided to buy cryptocurrencies at their recent low prices, however, with expectations that they have reached the bottom. Traders are buying the dip for significant cryptocurrencies, preventing crypto markets from crashing. 

An increasing number of major Central Banks are moving towards a tighter fiscal policy to tame soaring inflation rates. In its latest policy meeting, the US Federal Reserve voted to raise its benchmark interest rate by 75 points, while the BOE raised its interest rate by 25 base points. Stalling economic growth, combined with fiscal tightening gives rise to fears of recession driving cryptocurrency prices down.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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