Cryptos´ volatility after central banks hangover
Cryptocurrencies are unable to recover for now. Bitcoin (BTC), the world's largest digital currency, has fallen 0.10% on Monday and has lost the $17,000 level, while Ethereum (ETH), the largest altcoin, has dropped 0.13% and is trying to consolidate near $1,200.
The sector continues to be immersed in the effects of interest rate hikes by central banks. The market continues to worry about the overly aggressive monetary policy of both the US Federal Reserve (Fed) and the European Central Bank (ECB). The fear among investors is now focused on whether the Fed and the ECB will push economies into recession.
From a technical point of view, Bitcoin has seen a "failed breakout attempt from the dominant channel and return to the origin. The $17,500 level was breached in one session, but failed to hold at that area. The volume was not particularly remarkable and the lack of strength makes us return to the channel," highlighted Javier Molina, senior market analyst for eToro.
As things stand, according to Molina, the $15,500-$17,500 zone continues to dominate the short term pending news from the ecosystem. "From there will come one impulse or another and that should lead us to maximum caution. Losing $15,500 would mean going for $12,500. $17,500 is the resistance to beat and to hold," he stated.
Cryptos are also still immersed in the uncertainty and fear caused by the news surrounding Binance, the sector's giant, regarding its investigation for possible money laundering in the United States, as well as by the massive withdrawals due to fears of insufficient collateralization of its assets.
In other market news, there has been little movement. Binance coin (BNB) rises 0.5%, while Dogecoin (DOGE), Cardano (ADA) and Solana (SOL) lose positions.