• Tue. Jul 23rd, 2024

Bitcoin Plunges On Rate Hike Fears, Analyst Charts 2 Key Time Frames For BTC

ByShivdeep Dhaliwal

Jul 26, 2022
Bitcoin Plunges On Rate Hike Fears, Analyst Charts 2 Key Time Frames For BTC


Major coins declined sharply Monday evening as the global cryptocurrency market cap fell 5.9% to $979.9 billion at press time.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -5.8% -5.8% $21,287.58
Ethereum ETH/USD -9.8% -9% $1,442.71
Dogecoin DOGE/USD -7.9% -8.3% $0.06

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Trust Wallet Token (TWT) +3.7% $0.9
TrueUSD (TUSD) +0.05% $1
USDD (USDD) +0.04% ​​$1

See Also: How To Get Free Crypto

Why It Matters: Bitcoin and Ethereum plunged sharply as investor sentiment remained subdued ahead of a key policy meeting of the U.S. Federal Reserve and earnings data from major tech giants.

Cryptocurrencies mirrored the tech-heavy Nasdaq, which ended Monday down 0.4%. The S&P 500 and Nasdaq futures fell 0.4% and 0.5%, respectively, at press time after Walmart Inc WMT cut guidance and said increased inflation was affecting consumer spending.

This week’s Federal Open Market Committee meeting could possibly end with a 100 basis points interest rate hike, according to some economists. 

The CME FedWatch tool put the probability of a 75 bps rate hike at 77.5%, while for a 100 bps at 22.5% at press time.

Target Rate Probabilities For Jul 27 FOMC Meeting — Courtesy CME Group

The specter of rate hikes and a looming recession have not spared the dollar either, which has been inversely correlated with cryptocurrencies lately. The dollar index, a measure of the greenback’s strength against a basket of currencies, traded 0.08% lower at 106.40 at press time.

Edward Moya, a senior market analyst with OANDA, noted the stack of macroeconomic fundamentals working against Bitcoin in a note seen by Benzinga.

“Cryptocurrencies are broadly weaker as investors await an FOMC decision that will likely conclude with a 75 basis-point rate increase and reaffirm a commitment to fighting inflation.”

Delphi Digital said that going forward, there are two important timeframe levels for investors. If Bitcoin breaks above the current price range of $20,000 to $24,000, “high time-frame resistance” will come into play around the $28,000 to $30,000 region, it said.

“​​If [Bitcoin] breaks below the current range, we are likely looking at the $10K-$12K price range, with some possible front running in the $14K-$16K region,” Delphi Digital said in a note.

Cryptocurrency trader Michaël van de Poppe said “people really expect the worst” out of Wednesday — the final day of the FOMC meeting — ”but maybe the worst is already heavily priced in.”

An indicator that identifies a turning point in an asset’s price trend was used by Ali Martinez on Ethereum’s daily chart. The analyst said that TD Sequential presents a “sell signal.”

“A spike in profit taking that takes [ETH] below $1,550 could trigger a correction to $1,300.”

Ethereum’s gas consumption dominance by non fungible token activities has risen 6.2% since November, while that of decentralized finance applications fell from 27.5% to 15.1%, said Glassnode, an on-chain data focused company. 

Read Next: Mark Cuban Warns Crypto Faces Nightmare From SEC’s Next Move: ‘Wait Till You See What They Come Up With’


Image and article originally from www.benzinga.com. Read the original article here.