Cryptocurrencies edge higher as market sentiment shifts

Most major cryptocurrencies edged higher on Tuesday on renewed risk sentiment. Stock markets also extended Monday’s rally and US stocks, in particular, soared. Stock markets benefitted from the risk-on sentiment, propping up cryptocurrency prices. 

The bitcoin price rose above the key $20,000 level on Tuesday. If BTC declines support can be found at $18,500 and further down at $17,600, while resistance may be encountered near $20,500. 

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. Bitcoin ended the month with 3% losses. October however, has traditionally been a good month for the cryptocurrency, giving hope for the bulls to push on. The first week of October has not disappointed traders’ expectations so far, as the Bitcoin price has been on the rise since the start of the week.

Ethereum price also rose on Tuesday, climbing above the $1,360 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.

Ethereum price had been boosted in anticipation of the merge from the Proof-of-Work to the Proof-of-Stake method. The hype created around the merger had created a bullish sentiment for the cryptocurrency, which deflated following its completion, triggering a selloff.

BTC/USD 1hr chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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