Cryptocurrencies on the ascend after inflation data

Most major cryptocurrencies benefitted from the Fed Chair’s announcements on Tuesday and their downtrend was halted. Bitcoin and Ethereum were hovering precariously close to the $40,000 and 3,000 levels respectively at the start of the week. Jerome Powel’s testimony proved to be more cautious and less bullish than some investors expected, giving cryptocurrencies a breather. Early on Wednesday, BTC and ETH exhibited very low volatility, with Bitcoin trading sideways near the $43,000 level and ETH along its $3,220 resistance, as traders awaited the release of US inflation indicators. 

Following the release of the US CPI data, BTC and ETH climbed to $44,000 and $3,370 respectively. BTC is currently trading sideways near $43,800. If it continues its ascent it can find further resistance at $47,500, while support can be found at $40,000. Ethereum is currently trading sideways near $3,360 with support at $2,900 and further resistance at the $3,884 level. 

US inflation indicators and economic data that are scheduled to be released today can cause high market volatility, especially in light of the high fluctuations caused by the announcement of yesterday’s CPI rates.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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