Prospects of cryptocurrency, which has an inverse relationship with the US dollar, will be hinging upon the movement in the USD as investors in different asset classes await US CPI Data slated for release today, along with the US Producer Price Index (PPI) data and the retail sales data which is expected to be published on Thursday.
Major cryptocurrencies witnessed a fall on Tuesday amid gains in the greenback. Bitcoin (BTC) was trading at $25,729, down 0.53% while Ethereum (ETH), Tether USDt, BNB, USD Coin, XRP Dogecoin, Cardano and Solana fell up to 2%.
ETH was trading at $1,580.67 while Dogecoin was at $0.06124.
“In the last 24 hours, Bitcoin briefly lost its crucial support at $25,000 for the first time in almost three months. For BTC to not enter panic mode, $24,500 support remains sacrosanct. This is the level above which BTC has been trading for almost 6 months now. As for ETH, which fell 2.8%, the support of $1,600 has been breached and it is currently trading around $1,550,” Shubham Hudda, Senior Manager, CoinSwitch Markets Desk said.
In Hudda’s opinion, a major catalyst for SOL’s ($17.95) sell-off is still Wednesday’s expectation of FTX unlock, pointing out that this cryptocurrency was already down by around 50% from its recent high in July. “Additionally, given that a majority of the SOL is time-locked for FTX, we could very well see a ‘sell the rumor, buy the news’ event playing out on Tuesday,” he added.
Did you Know?
S has launched a new enterprise on the Metaverse with the aim of accelerating cloud adoption among Indian firms. The interactive and immersive ‘cloud on wheels’ platform will enable customers to experience the full range of S ’s offerings and reimagine processes for improved business outcomes.
View Details »Prospects of cryptocurrency, which has an inverse relationship with the US dollar, will be hinging upon the movement in the USD as investors in different asset classes await US CPI Data slated for release today, along with the US Producer Price Index (PPI) data and the retail sales data which is expected to be published on Thursday.
Among the top-performing cryptocurrencies, MKR leads with a remarkable gain of 120%, followed by OMG with 35%, ZIL with 26% and MATIC with 15%. The biggest losers include ENS with a significant drop of 69%, WAVES with 64%, COTI with 38%, GNS with 28% and REP with 26%.
“The ‘Three Black Crows’ candlestick pattern on the 4-hour time frame signals a continuation of the bearish trend. Bitcoin is currently in oversold territory with indicators such as the RSI below 30 indicating an exhaustion of sellers, which may lead to a brief bullish correction before another downtrend. MACD is also in a sell zone with bearish histograms below zero,” Sathvik Vishwanath, Co-Founder & CEO, Unocoin said.
Vishwanath said that the Bitcoin price was currently below the 50-day EMA at $25,500, reinforcing bearish sentiment and BTC could face resistance around $25,400 and a small bullish correction to $25,600 may precede a deeper decline towards $24,800. “The descending trend line at $25,600 is a significant barrier, but an upside breakout could push Bitcoin to $26,400 or even $46,000,” he added.
A break below $24,800 could lead to support at $24,000 the Unocoin CEO said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)