Bitcoin Collapses on Fear of Price Rises, Analyst Charts 2 Key Time Frames for BTC

Major coins fell sharply Monday night as the global cryptocurrency market cap fell 5.9% to $979.9 billion at the time of writing.

Major Coin Price Performance 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 Winners (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

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Why it matters: Bitcoin and Ethereum fell sharply as investor sentiment remained subdued ahead of a key US Federal Reserve policy meeting and earnings data from major tech giants.

Cryptocurrencies mirrored the tech-heavy Nasdaq, which fell 0.4% on Monday. The S&P 500 and Nasdaq futures fell 0.4% and 0.5% respectively at press time after Walmart Inc. WMT lowered its guidelines and said increased inflation was impacting consumer spending.

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

The CME FedWatch tool estimated the probability of a 75bp rate hike at 77.5%, while the 100bp rate was 22.5% at the time of writing.

Target Rate Probabilities for July 27 FOMC Meeting – Courtesy CME Group

The specter of interest rate hikes and an impending recession have also not spared the dollar, which has recently been inversely correlated with cryptocurrencies. The dollar index, a measure of the dollar’s strength against a basket of currencies, was down 0.08% at 106.40 as of going to press.

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

“Cryptocurrencies are weaker overall as investors await a FOMC decision that will likely end with a 75 basis point rate hike and a reaffirmation of their commitment to fight inflation.”

Delphi Digital said there are two key timeframes for investors going forward. If Bitcoin moves above the current $20,000 to $24,000 price range, “high time frame resistance” will come into play around $28,000 to $30,000, it said.

“If I [Bitcoin] below the current range, we’re probably looking at the $10K-$12K price range, with some possible fronts in the $14K-$16K region,” Delphi Digital said in a note.

Cryptocurrency trader Michaël van de Poppe said “people are really expecting the worst” from Wednesday — the last day of the FOMC meeting — “but maybe the worst is already heavily priced in.”

People are really expecting the worst from Wednesday, but perhaps the worst is already heavily priced in.

— Michaël van de Poppe (@CryptoMichNL) July 25, 2022

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

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

— Ali Martinez (@ali_charts) July 25, 2022

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

#Ethereum The relative dominance of gas consumption by NFT activities has increased by 6.2% since November, indicating a continued market preference for NFT transactions.

Meanwhile, the dominance of DeFi applications has fallen from 27.5% to 15.1%.

Live Chart:

— glass node (@ glass node) July 25, 2022

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