The world’s largest crypto by market value, Bitcoin, witnessed an end of its healthy gains following comments by Jerome Powell, signaling that the United States Federal Reserve may accelerate its easy-money policies ending. Nevertheless, Ether maintains an upward attitude, approaching $4,800 before a slight decline. However, here is what the market had for you this morning.
Bitcoin plunged after the comments by United States Fed Chair Jerome Powell, while Ether recorded gains. The technical outlook suggests that support levels are still intact. That can see BTC establishing tight sessions within the $55,000 – $60,000 range in today’s sessions.
Crypto Prices
- Bitcoin – $57,095 (1.4% drop)
- Ether – $44,730 (4.9% upsurge)
Markets
- Gold – $1,772 (80% decline)
- NASDAQ – $15,537 (1.6% drop)
- Dow Jones – $34,483 (1.8% plunge)
- S&P 500 – $4,568 (1.9% loss)
Market Actions
Bitcoin saw its price sinking after Fed Reserve Chairman Jerome Powell issued a warning on Tuesday, commenting on higher inflation risks. With that, the central bank may consider reducing its asset buy policies that have supported risky assets marketplace.
Oanda broker senior market analyst Edward Moya wrote a market comment, stating that amplified hike expectations and a quicker Fed taper were negative news for BTC. He added that Bitcoin now trades as a risky asset and not an inflation hedge.
On the other part, Ether, the 2nd-largest digital currency by market cap, ended yesterday with a fourth consecutive day of upsurges. At this publication, data from CoinDesk show that ETH hovers past $4,600. Moya believes that Ethereum remains a favorite bet by most market players and may surge to $5,000 if risk appetite returns.
ETH/BTC chart shows ETH’s increasing market dominance. The pair’s daily chart on Binance increased by over 5.2% at this publication. That is according to TradingView stats.
Other Layer1 tokens also recorded upswings on Tuesday. For instance, Terra (LUNA) attained another record high in its price.
Technical Outlook
BTC buyers failed to maintain Monday’s bounce. However, the support in the $53,000 – $55,000 might prevent further declines on Bitcoin’s current pullback. The digital coin was nearly 2% lower over the last 24hrs and remained somewhat flat in the past seven days.
The 4hr chart has the 100-day MA suggesting a near-term downtrend. That shows buyers booked some of their profits during last month’s rallies. Meanwhile, the resistance at $60,000 has proven a vital obstacle for buyers regardless of the oversold displays on the charts.
