Cryptocurrencies steady ahead of US CPI

Escalating Russian hostilities against Ukraine at the beginning of the week have triggered a risk-aversion sentiment, putting pressure on stock markets and crypto markets alike. A series of Russian missile attacks against Ukrainian cities, bolstered the safe-haven dollar, putting pressure on riskier assets. U.S. President Joe Biden spoke with Ukrainian President Volodymyr Zelensky on Monday condemning the latest attacks, while G-7 leaders vowed to help Ukraine for ‘as long as it takes. 

An increasing number of Central Banks are tightening their monetary policy to combat soaring inflation. Successive rate hikes and tighter fiscal policies give rise to global recession concerns. Many market analysts predict that crypto markets will exhibit high volatility this week. Cryptocurrencies are vulnerable at the moment, as a bear market has prevailed for months. The eagerly-awaited US inflation CPI data later on Thursday may spark high volatility. Thursday’s CPI data are anxiously awaited by traders as they are likely to influence the severity of the Fed’s next rate hikes.

Bitcoin traded sideways on Wednesday with low volatility, just above the $19,000 level. If BTC declines support can be found at $18,500 and further down at $17,600, while resistance may be encountered near $19,700. 

Bitcoin has been in a bear market almost continuously since last November, with its price registering a steep drop from an all-time high of over $68,000 in November 2021, to below $20,000 this month. 

Ethereum price gained a little strength on Wednesday after plummeting on Tuesday. Ethereum price however still remains below the $1,300 key level. If Ethereum's price declines, it may encounter support at $1,255 and further down at the psychological level of $1,000. If Ethereum's price increases, resistance may be encountered near $1,407.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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