October 5, 2023

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Bitcoin Drops on Price Rise Fears, Analysts Plot for Two Key Bitcoin Timeframes

Bitcoin Drops on Price Rise Fears, Analysts Plot for Two Key Bitcoin Timeframes

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

Major currency price performance
Currency 24 hours 7 days price
Bitcoin Bitcoin / US Dollar -5.8% -5.8% USD 21287.58
Ethereum ETH / USD -9.8% -9% USD 1442.71
Dogecoin DOGE / USD -7.9% -8.3% 0.06 dollars

Top 24 Hour Gainers (data via CoinMarketCap)
Cryptocurrency Change by 24 hours (+/-) price
Trust the wallet token (TWT) + 3.7% $0.9
true USD (TUSD) + 0.05% 1 dollar
American dollar (American dollar) + 0.04% 1 dollar

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Why it matters: Bitcoin And the Ethereum It fell sharply as investor sentiment remained weak ahead of the major policy meeting in the US Federal Reserve and earnings data from major tech giants.

Cryptocurrencies reversed the tech-heavy Nasdaq, which finished 0.4% lower on Monday. S&P 500 and Nasdaq futures are down 0.4% and 0.5%, respectively at press time then Walmart Corporation WMT Steering cut He said the increase in inflation affected consumer spending.

This week’s FOMC meeting is likely to end with a stretch Increase the interest rate by 100 basis pointsaccording to some economists.

CME FedWatch put the probability of a rate hike of 75 basis points at 77.5%, while the rate was 100 basis points at 22.5% at the time of writing.

Target Price Prospects for July 27 FOMC Meeting – Courtesy CME Group

The specter of higher interest rates and a looming recession has also not escaped the dollar, which has been inversely correlated with cryptocurrencies lately. The Dollar Index, a measure of the dollar’s strength against a basket of currencies, is trading down 0.08% at 106.40 at press time.

Edward MoyaA senior market analyst at OANDA, pointed out the group of macroeconomic fundamentals working against Bitcoin in a note seen by Benzinga.

“Cryptocurrencies are broadly weaker as investors await the FOMC decision which is likely to conclude with a 75 basis point increase and reaffirm commitment to fighting inflation.”

Delphi Digital He said that from now on, there are two levels of timeframe that are important to investors. If Bitcoin breaks out of the current price range of $20,000 to $24,000, “high time frame resistance” will be activated around the $28,000-$30,000 region, she said.

“if [Bitcoin] “In the event of a break below the current range, we would likely look to the $10,000-12K price range, with some potential forward in the $14,000-$16K region,” Delphi Digital said in a note.

Cryptocurrency Dealer Michael van de Poppe “People are really expecting the worst” from Wednesday — the last day of the FOMC meeting — “but the worst may have been priced significantly already,” he said.

An indicator that determines a turning point in the direction of an asset’s price has been used before Ali Martinez On the daily chart of Ethereum. The analyst said TD Sequential is providing a “sell signal”.

‘Rising in profit taking [ETH] Below $1550 could lead to a correction to $1300. “

Ethereum’s dominance of gas consumption through non-fungible token activity has risen 6.2% since November, while the share of decentralized finance applications has fallen from 27.5% to 15.1%. glassa data-focused on-chain company.

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