Crypto cart was trading sideways on Wednesday on the back of profit booking after a decent upside in the last few days. The mixed movement in the other riskier assets kept the crypto traders hooked to the edges ahead of key inflation data scheduled this week.
Largest crypto token, Bitcoin breached $23,000 level but was holding $22,500 comfortably. Ethereum also lost about 6 per cent to slip below $1,600 mark.
In the past 24 hours, most cryptocurrencies have seen a slight decrease as the markets prepare for the release of US GDP figures on Thursday and consumer sentiment data on Friday, said Edul Patel, CEO and Co-founder at Mudrex.
"Bitcoin is currently trading at $22,500 with support at $22,450 and resistance at $22,600. Ethereum has also slowed, trading at $1,500. A break above the $1,600 level could boost bullish sentiment," he said.
Top crypto tokens were with big cuts on Wednesday, following the profit booking after recent firm gains. Avalanche and Solana plunged 9 per cent each, whereas Shiba Inu and Polkadot tanked 8 per cent each. Cardano and Dogecoin shed 9 per cent each.
The global cryptocurrency market cap was trading lower at $1.02 trillion mark, plunged about 4 per cent in the last 24 hours. However, the total trading volumes remained flat, up about a per cent, close to $56.94 billion.
The bullish trend in recent few days in cryptos is attributed to institutional investors increasing their holdings in anticipation of another bull run and the falling value of the US dollar supporting the price of the cryptocurrency, said Sathvik Vishwanath, Co-founder & CEO at Unocoin.
"Both short-term and long-term investors are benefiting from the recent price increase. However, the rising number of COVID-19 cases in China and Gemini downsizing by laying off 10 per cent of their workforce may impact the crypto market in the future," he added.
Major updates from the world
Token holders from the Sushi community have voted on two separate proposals that aim to strengthen the decentralized-finance (DeFi) service’s treasury and long-term staying power.
Porsche is halting the mint of its first non-fungible token (NFT) collection, the German sports car manufacturer announced on Twitter, after receiving negative feedback from its community.
Fractal, the platform for game-related non-fungible tokens (NFT) developed by Twitch co-founder Justin Kan, is expanding into the Polygon network to boost accessibility.
Tech View by Giottus Crypto Platform
Bitcoin (BTC) is the leading crypto asset that allows for peer-to-peer transactions without the need for a central authority. The total supply of BTC is capped at 21 million, and each of them has been trading significantly higher this month. BTC is trading slightly above $22,500 today, after briefly breaching $23,000. It is up by nearly 40% since the start of the year.
Having claimed a 5-month high on Saturday, BTC has been consolidating in the last three days. With a ton of support below, including the short-term support at $22,500 and the FIB support at $21,500, bulls seem to have an upper hand for now. If BTC manages to claim the resistance at $23,133, the key mark of $25,000 should be its next target.
BTC’s 50 and 200-day moving averages (at $18,000 and $19,600, respectively) are far below its current price, indicating that it might be overbought. However, every attempt at a correction has been thwarted so far as BTC currently tests a support-resistance flip at $22,500.
Resistance: $23,133, $25,000, $25,200
Support: $22,500, $21,500, $20,000
(Views and recommendations given in this section are the analysts' own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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