New Delhi: Despite volatility among riskier asset classes, crypto tokens were able to reverse the previous day’s losses. Recent volatility is due to factors like inflation, the Ukraine crisis and the tightening of the monetary policies.
Barring the dollar-pegged Tether, all major crypto tokens were trading higher during the early hours on Tuesday. Dogecoin zoomed 20 per cent. Terra rallied 8 per cent, whereas Ethereum was up by 5 per cent.
Bitcoin and Ethereum recovered back in the past 24 hours. Seems like the short-term Bitcoin buyers have returned around the support level, said Edul Patel, CEO and Co-founder of Mudrex.
“At the same time, most cryptocurrencies have also gained decently, stabilizing after dipping. We could see range-bound trading in the coming few days,” he added.
The global cryptocurrency market cap was trading at $1.86 trillion, up over 3 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed about 43 per cent to $97.88 billion.
Following hawkish remarks from US Fed Chair Jerome Powell last week, cryptocurrency prices have closely followed traditional markets, which have sold off in preparation for potentially tighter monetary policies, said OKX insights team.
“Fed representatives will meet in early May to make a decision on another rate hike, which could spell additional doom in risk assets,” he added.
Twitter has accepted a $54.20-a-share buyout offer from Tesla CEO Elon Musk, valuing the social media company at about $44 billion in cash. Once the deal is completed, Twitter will become a privately held company.
Crypto exchange Kraken has received a Financial Services Permission (FSP) license from the Abu Dhabi Global Market (ADGM) to operate a regulated exchange platform in the United Arab Emirates (UAE).
Tech View by Giottus Crypto Exchange
Bitcoin (BTC) has set itself up for interesting price action this week with several highlights during its last weekly close. Aside from being its lowest weekly close since early March, Bitcoin’s sub-$40,000 level was also its fourth red weekly close in a row – the first time since June 2020.
While charts indicated further downsides, BTC has closed significantly in the green today at $40,500. Now, once again, bulls and bears are facing off to determine the next direction.
If BTC gets rejected from the $40,700 key level, a retracement to the $39,500 levels is on the cards before another run up. On the way up, BTC will need to contend with resistances at $41,500 and $42,000 to assert some sort of short-term bottom in its current move.
But the bulls will certainly want a reclamation of the $43,000 level to establish a higher high and change its market structure on the larger time frame charts.
Support: $40,000, $39,500
Resistance: $41,500, $42,000, $43,000
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)