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The cryptocurrency market increased its losses on Tuesday ahead of the much-anticipated US Federal Reserve meeting, which will consider raising interest rates. Bitcoin and the cryptocurrency market are reacting sharply to this event.
Each of the top 10 digital coins traded down at 9:00 am ET. Polkadot and Solana lost the most, 9 and 8 percent, respectively.
The global cryptocurrency market capitalization has dropped more than 5 percent to $ 2.2 trillion from the previous day. However, the total cryptocurrency market grew 38 percent to $ 97.03 billion.
Crypto products and funds posted net inflows of $ 88 million last week, data from digital asset manager CoinShares showed on Monday amid a mixed picture of investment flows over the week that prices fell.
In the last 24 hours after taking profit, the cryptocurrency market has been hit hard. Overall trading volumes jumped more than 40% as traders rushed to seek shelter. In the next day, we must beware of increased volatility.
Opinions and events
Markets fell sharply ahead of the Fed meeting, which will decide on its monetary policy. According to research group CoinDCX, it looks like many are pricing in the face of a potential rollback in bond purchases and rate hikes starting next year and are reducing their asset risk exposure accordingly.
“Combined with the ongoing debt crisis in China and Europe, as well as the excessive fat prevailing in global asset valuation, a bear market could be on the horizon. Calculated risk management is key at this stage and leverage should generally be avoided, ”he added.
Bank of England Governor Andrew Bailey warned banks and other regulated financial companies on Monday to be “especially careful” about holding volatile cryptoassets until new rules are introduced by regulators.
In addition, Abu Dhabi’s state fund Mubadala has invested in an ecosystem around cryptocurrencies such as blockchain technology, given the rising market value of digital currency, its CEO Khaldun al-Mubarak told CNBC.
The Singapore branch of Binance, one of the world’s largest cryptocurrency exchanges, said on Monday that it would withdraw its application for a local license and shut down the trading platform in the generally crypto-friendly city-state.
Bitcoin analysis
At the time of writing, Bitcoin is down 5.2% to $ 46,438. A mixed start to the day caused BTC to rally to a morning high of $ 46,839 and then plummet to a low of $ 46,438.
Bitcoin left major support and resistance levels untested.
Bitcoin Day Ahead
Bitcoin will need to go through the $ 47,590 turning point to trigger the first major resistance at $ 49,393. However, a breakout from the $ 48,500 levels will require support from the broader market.
Barring an ongoing crypto rally, the first major resistance and resistance at $ 50,000 is likely to limit upside potential. In the event of an extended rally, Bitcoin could test the 23.6% FIB of $ 53,628 before any pullback. The second major resistance level is at $ 52,036.
Failure to cross the $ 47,590 pivot point would result in a first major support at $ 44,947 and a 38.2% FIB at $ 44,144. Barring another lengthy sell-off on that day, Bitcoin should stay away from its second major support at $ 43,144.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
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