This could be a positive for Bitcoin as a risk asset, as investors would likely pile into the cryptocurrency as threats of a recession fade.
The strong resistance of Bitcoin in its support zone pending the rate hike could see volatility today and take support to the $18,000 level.
The price of BTC has been holding at the $18,000 support for almost five months. The breakout of this support level will be a breakout of the descending triangle pattern.. It can result in extreme volatility in the crypto market.
Still, if the Fed’s interest rate hike reaches 50 bps, Bitcoin may give a weekly close above the trend line. Then the bearish pattern will be invalidated.
And Ethereum?
After breaking the resistance of $1,550, Ethereum experienced a rapid rally and reached $1,590. Only to reverse down to the $1,500 zone.
In the continuation of the upward movement, the next resistance price will be followed at $1,660.
On the other hand, if the selling that has been going on since yesterday continues predominantly today, the $1,470 – 1,430 – $1,380 levels should function as the closest support levels below $1. 500.
Consequently, the $1,500 price on the Ethereum market remains a major support. Movements around this price can be decisive for the direction of the cryptocurrency. Also, In the volatile price movement that may occur in the coming days, it will be crucial for ETH to hold the $1,350-$1,400 range so as not to add to losses further.
Source: Ambito
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