Bitcoin and other crypto tokens were struggling on Wednesday as the hints of higher rates for a prolonged period dented the market sentiments. The rise in US Treasury yields also pushed the riskier asset class lower. The global macroeconomic cues will guide the markets going ahead.
Bitcoin was back in the downward trajectory as the largest crypto token declined about half-a-per cent but managed to hold above $26,000-levels. However, its largest peer, Ethereum, inched up slightly on the similar lines but could not race-past $1,600-mark. Price action in the altcoins remained on the downside in the early hours.
Bitcoin’s value has recently consolidated above the $26,100 threshold. This may be because of the surge US 10-year Treasury yield, reaching its highest level in about 16 years. This significant increase in interest rates has had a similar impact on the equity markets, said Edul Patel, Co-Founder & CEO at Mudrex.
“Bitcoin has seen a 0.58 per cent increase in value this month, and an impressive 58 per cent gain for the year thus far. Meanwhile, Ethereum remains in a trading range between $1,550 and $1,600. In other news, four members of the US House Financial Services Committee have urged the SEC to expedite the approval of ETF applications,” he said.
Barring a few exceptions, all top crypto tokens were trading lower on Wednesday. Polygon dropped about 3 per cent, while Toncoin and Solana declined more than 2 per cent each. Polkadot, Litecoin and Shiba Inu were down a per cent each.
The global cryptocurrency market cap was trading slightly lower, falling to $1.05 trillion-mark, as it dropped about half-a-per cent in the last 24 hours. However, the total trading volumes plunged about 15 per cent to $19.47 billion. Among the gainers, Dogecoin and BNB rose about a per cent each.
Image: Crypto-chart-price
Tech View by Giottus Crypto Platform
Bitcoin (BTC) is consolidating just below its key moving averages after failing to decisively breach them earlier this month. Its RSI is in neutral territory (46) with a 5-year low in volume of trade on exchanges – indicating a wait and watch approach by long-term investors. This comes in spite of a $147 million BTC buy by MicroStrategy.
Image: Chart-BTC
The asset needs to take out the $28,200 level that sits around its 100-day MA to maintain a bullish bias leading into Q4 this year.
Key psychological support zone at $25,000 has been held successfully in the recent past while a drop further down to $23,500 can’t be ruled out if volumes weaken further. That said, Bitcoin is up ~1% this month, and will mark the first time in 7 years that September isn’t red for the asset if it stays so this week.
Major Levels:
Support: $26,000, $25,100, $24,500
Resistance: $26,500, $27,500, $28,200
(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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