The crypto market was calm mostly during last week and this week until Wednesday. As expected, tensions in other markets with the FOMC meeting in the center of stages also affected the crypto market.
The Federal Reserve and other Major central banks, including BoE and ECB, also had a policy meeting. Finally, with hawkish tones in the announcements and press conferences on one hand and weaker-than-expected economic data from China, on the other hand, marker risk increased, which is harmful to risky assets such as cryptocurrencies.
Negative sentiments are still the dominant emotions in the markets.
Bitcoin was range bound between $16,800 and $17,200 before the fluctuations in recent days. At first, with lowering inflation risks, when market participants used to bet on less hawkish policies in line with stock prices, BTC also increased, and later after hawkish stances, Bitcoin also lost ground. Now it is back to its previous range, which is expected to continue. If the BTC price declines under the first support at 16,700, the next support can be found near $16,000, while resistance may be encountered at $17,400 if it can pass 17,100 as its first resistance.
Ethereum price also remained in a narrow range until Tuesday, oscillating around $1,250 and $1,280. In decline after Tuesday and Wednesday’s raises, ETH falls more than BTC to breach its crucial support at $1,220. With almost a 12% loss from its weekly high, ETH is currently trading in a clear downtrend in most traded charts. If Ethereum’s price declines, the next support will be around $1,150 and then at the psychological level of $1,000. On the flip side, if it increases, resistance may be encountered near $1,350.
With all mentioned reasons, still cryptocurrency market is suffering from the recent collapse of FTX, which triggered a generalized crypto market sell-off and undermined confidence in the crypto industry.