Bitcoin: The world of cryptocurrency has always been full of ups and downs. Sometimes it brings a smile on the faces of investors and sometimes it increases anxiety. On Monday, the crypto market raised a little hope amid the long-running sluggish environment. Bitcoin (BTC) showed strength, while Ethereum (ETH) continued to trade with a slight decline. At this time all eyes are on the decision of the US Federal Reserve, which can decide the direction of the market in the coming days.
Bitcoin showed strength remained above $116,000
Bitcoin showed strength on Monday and was seen trading at $116,370. In the last 24 hours, it saw a slight increase of 0.46%. Throughout the day it fluctuated between $114,903 and $116,181. Trading volume also increased to $35.24 billion and its market cap remained stable at $2.31 trillion. It is clear from this that Bitcoin still remains the world’s largest and most trusted digital asset.
However, in the last few weeks, Altcoins have performed better, causing Bitcoin’s dominance to fall from 66% to 57.2%. Experts believe that the expectation of a cut in US interest rates and the patterns seen on technical charts are supporting Bitcoin.
Strong resistance at $120,000 support at $100,000
ZebPay’s Head of Trade Harish Vatnani says that $120,000 and $125,000 are very strong resistance levels for Bitcoin. If it has to move forward, it will have to cross these levels and remain stable. On the other hand, $105,000 and $100,000 will act as strong support for it.
At the same time, Giottus CEO Vikram Subburaj believes that Bitcoin is yet to show a clean breakout. Unless $114,000 forms a strong base, the uptrend will not sustain. But if it goes above $117,000, the pace may pick up again.
Ethereum’s path a little difficult
While Bitcoin showed strength, Ethereum registered slight weakness on Monday. ETH was trading at $4,660, showing a decline of 0.35% in the last 24 hours. It fluctuated between $4,581 and $4,681 throughout the day.
Technically, Ethereum is consolidating between $4,600–$4,700. If the uptrend continues, it can go up to $4,760 and then $5,000. But its support zone remains between $4,550–$4,650.
Market experts say that due to ETH ETFs and declining exchange reserves, the selling pressure is decreasing, increasing investor confidence. However, if US inflation remains high for a longer period, long-term Treasury yields could put pressure on the market.
Mixed impact in the world of altcoins
The altcoin market also saw a stir. Many currencies like Flare (FLR), Monero (XMR), Aerodrome Finance (AERO), Ethena (ENA), Bitcoin Cash (BCH), Nexo (NEXO), OKB (OKB), GateToken (GT) and XDC Network (XDC) climbed up to 6%.
In contrast, currencies like Worldcoin (WLD), Zcash (ZEC), Cronos (CRO), Dodgecoin (DOGE), Cardano (ADA), Gala (GALA), Curve (CRV), Algorand (ALGO) and Tezos (XTZ) fell by up to 5%. It is clear from this that at present the market is going through a phase of volatility instead of stability.
What is the signal for investors
Experts say that in the coming times, the decision of the US Federal Reserve to cut interest rates will determine the direction of the market. It is expected that there will be a cut of at least 25 basis points, which can be a big positive sign for crypto.
At present the market is range-bound, but as soon as the policy becomes clear, volatility can increase rapidly. This may be the time for investors to enter the market at the right prices and gradually strengthen their portfolio.
Disclaimer: This article is written for the purpose of providing general information only. The information given here is not any kind of investment advice. Be sure to consult your financial advisor before investing in cryptocurrency.
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