Bitcoin suffers an onslaught after Jerome Powell’s speech and starts the month down

In the last hours, the words of the president of the Federal Reserve (Fed) Jerome Powell limited the increases of Bitcoin above $ 59,000. The price plunged after Powell warned on Tuesday that the risk of higher inflation rose, noting that the central bank would consider accelerating the reduction of its asset purchase policies that have boosted risk asset markets.

“A faster taper from the Fed and rising expectations of rate hikes [de interés] it was bad news for bitcoin, “said Edward Moya, senior market analyst at Oanda.” Bitcoin is trading more as a risk asset than as a hedge of inflation. “

However, what is interesting is that it seems to have found support around $ 56,000, ahead of last week’s lows, “which could suggest that we are seeing a wave of bargain hunters hoping to profit. from the recent drop of more than 20%, “said Craig Erlam, an analyst at Oanda.

“It seems premature considering the wild swings we’re seeing in sentiment right now and the downside risks that Ómicron poses. But bitcoin has performed well since the beginning of the pandemic, “he added. And this analyst pointed out, compared to Powell’s words, that there is an opinion in the market that “if central banks are forced to intervene, bitcoin could benefit once again. “

All in all, the 100-day moving average on the four-hour chart indicates a short-term downtrend. This means that buyers have embarked on a clear profit taking after the rallies of the last month. Recently, the $ 60,000 resistance level was a key hurdle for buyers despite oversold readings on the charts. So far, support levels remain intact, which could establish a trading range between $ 55,000 and $ 60,000.

The prospects for Ethereum

Regardless of what bitcoin does, some ‘altcoins’ have started December with a lot of push. Green is imposed among the main tokens by market capitalization, led by Ethereum that has caressed the $ 4,800 dollars and points to more rises towards the market goal of $ 5,000 dollars. The capitalization of cryptocurrency number two is around 560,000 million dollars, very close to its milestone of November 11 and technical analysis also suggests more rises.

“Ethereum remains the favorite crypto bet of most traders and it looks like it will make another rally to $ 5,000 once risk appetite returns.”adds Moya.

“Ether bounced off the neck of the developing head and shoulders pattern on November 28, suggesting that the ‘bulls’ are defending the level with all their might. Sustained buying pushed the price above the SMA. 20-day ($ 4,316) on Nov. 29, “according to ‘CoinTelegraph’ analysis.

The token’s all-time high at $ 4,884 is now the first resistance to overcome, and if successful, the hikes are projected to roughly the upper bound of a bullish pennant at $ 5,252. If it breaks and closes above the overhead resistance of $ 4,551, which it did on Tuesday, closing at $ 4,631, the correction will be over. Ethereum could then rise to its record. “A break above this level will invalidate the bearish setup and open the door for a possible rally to $ 5,796. “the analysts ventured.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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