NEW DELHI (CoinChapter.com) — The cryptocurrency market saw several tokens register losses on Thursday, with Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) prices registering losses in the past 24 hours.
Bitcoin price continued holding above $20,000, with the $20,500 level now acting as resistance. Meanwhile, ETH bulls continued helping the token hold above $1,500 after Ethereum price tested the key support level on Wednesday.
DOGE prices seem to be running out of fuel from Elon Musk’s Twitter deal. After a massive rally, the meme token is now crabbing, with the $0.15 resistance level rebuffing Dogecoin price action.
Crypto prices dropped after the US Federal Reserve announced it raised the interest rates by 0.75 percentage points. However, the central bank hinted that it might be getting closer to slowing the rate hike pace.
The hike is the Fed’s sixth increase of 2022 and the fourth straight 0.75 percentage point hike, bringing the Fed funds rate to the range of 3.75%-4%.
Meanwhile, the Federal Open Market Committee stated that the ongoing increases would help create a “monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
“In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
The FOMC statement said
Stocks fell immediately after Fed chair Jerome Powell’s postmeeting press conference. The Dow Jones Industrial Average closed 1.6% down, the S&P 500 slid 2.5%, and the Nasdaq composite fell 3.4%.
Bond yields and the US dollar fell after the committee released its statement but rebounded after Powell’s speech.
Moreover, the cryptocurrency markets mimicked the traditional financial markets.
1. Bitcoin(BTC) Price Analysis
Bitcoin price flipped a multi-month descending trendline resistance on Oct 25. However, recent macroeconomic forces have led to the BTC price losing its gains, with the token dropping to $20,000 after the release of the Fed statement.
Furthermore, the largest cryptocurrency looked vulnerable to dropping below $20,000. Long upper wicks on the daily candles indicate traders are disposing of risk assets like Bitcoin.
If Bitcoin price continues falling, the token might end up needling below its 20-day EMA (red wave) and 50-day EMA (purple wave) and falling to support near $19,600. Moreover, a break below immediate support could result in BTC price testing support below the descending trendline, near $18,480.
Since June this year, bitcoin prices have rebounded off the $18,480 support.
Conversely, if Bitcoin’s price stays above its immediate support, the token might target the 100-day EMA (blue wave) resistance near $21,100. A move above the 100-day EMA resistance could see BTC price reach $22,200 before downside corrections pare gains.
Meanwhile, Bitcoin’s relative strength index remained neutral, with a value of 52.08 on the daily charts.
2. Ethereum(ETH) Price Analysis
Ethereum price faced the same bearish headwinds as Bitcoin, with the likely delay in the Fed pivot adding bearish macroeconomic pressure to ETH price action. Furthermore, long wicks on the daily candles highlight the presence of bears.
Also Read: XRP Price Eyes 50% Drop While Ripple vs SEC Case Drags On
After a four-day-long downtrend, ETH price jumped 2.9% from its intraday low of $1,515 to reach the day’s high of $1,559 before downside corrections pared gains. If the bears continue selling, Ethereum’s price could fall to immediate support from its 20-day EMA (red wave) near $1,460.
Additionally, a marketwide sell-off could force the Ethereum price to support near $1,360 before recovering.
Conversely, if ETH price rebounds off support from its 100-day EMA (blue wave), the prime altcoin might rise to resistance near $1,620. ETH prices have not closed above $1,600 since Sept 15.
Hence, a break and close above immediate resistance could provide Ethereum’s price the momentum needed to challenge resistance from its 200-day EMA (green wave) near $1,760 before corrections pare gains.
Meanwhile, Ethereum’s relative strength index is currently neutral, with a value of 59.46 on the daily charts.
3. Dogecoin (DOGE) Price Analysis
Dogecoin price’s meteoric rise since Oct 25 has slowed down as November started. The rally was based on speculation of Elon Musk introducing DOGE payments for the blue check marks on Twitter.
The blue tick marks signify a particular account has been verified because it is notable in government, news, entertainment, or another category. The rally fizzled out as Dogecoin entered Nov, with long upper wicks on DOGE’s daily candles indicating traders were selling on relief rallies.
Meanwhile, DOGE’s relative strength index continued to be overbought, with a value of 77.73 on the daily charts. However, the RSI trendline is sloping downward, suggesting declining buying pressure for the canine-themed meme token.
Dogecoin price reached an intraday high of $0.137 after jumping 8.5% from the day’s low of $0.1263 before downside corrections pared gains. However, if the DOGE price continues to fall, the meme token could end up testing support near $0.123.
Moreover, a break below immediate support could see Dogecoin price fall to support near $0.1 before recovering.
Conversely, if traders continue buying, or if some fresh news of DOGE-fuelled Twitter pops up on the wire, Dogecoin price could rise to challenge support near $0.142. In addition, a break and hold above immediate resistance would likely see DOGE price reach $0.167 before retreating.
Read here to learn about some unlikely crypto whales — hint: governments who hate cryptocurrencies.
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