Cryptocurrency prices fail to gain upwards traction

Most major cryptocurrency prices were stable on Thursday but failed to gain upwards traction. Risk sentiment remains uncertain, affecting stock markets and crypto markets alike. 

Stock markets traded both gains and losses on Thursday and Crypto markets followed suit, exhibiting low volatility. 

Global recession fears have been propping up safe-haven assets and pushing down cryptocurrency prices. Steep rate hikes put pressure on risk assets, as most major Central Banks shift towards a tighter fiscal policy. On Thursday, the ECB raised interest rates by an unprecedented 75 bps. 

Fed rhetoric remained hawkish on Thursday, as Fed Chair Jerome Powell stated that the US Central Bank would continue raising interest rates until the job is done. Powell’s hawkish speech increased rate hike bets, boosting the dollar and putting pressure on cryptocurrencies. Markets are currently wavering between a 50-bp and a 75-bp Fed rate hike in September.

Bitcoin’s continued testing the $19,200 level support on Thursday. If BTC continues to fall, further support can be found at the $17,600 level representing the yearly low, while resistance may be encountered near $20,500 and further up at $21,800. 

Ethereum remained stable on Thursday, testing the $1,640 level resistance. If Ethereum's price declines, it may encounter support near $1,550 and further down at $1,420. If the Ethereum price rises past the $1,640 resistance, further resistance may be encountered near $1,720.

Ethereum price has been boosted in anticipation of the so-called ‘merge’, which will pass through a series of phases in the next couple of weeks and is expected to be finalized on September 19th. The Merge from the Proof-of-Work to the Proof-of-Stake method will be a significant network upgrade that is expected to lead to an increase in demand for Ethereum. 

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: