Cryptomarkets have gained today on the fall in bond yields, rebounding stock markets, and signs of waning inflation. However, most altcoins traded lower. Stablecoins XRP and Ethereum plunged over five percent, while Dogecoin and Avalanche shed two percent. Ethereum and Ripple are now one network, and the move to merge the two coins has raised the number of user contracts that are called on the Ethereum network. These user contracts can be complex and require more than simple token transfers. Sign up now on popular platforms to start bitcoin trading.
Bitcoin price surpassed the USD 20,500 resistance.
After breaking the USD 20,000 resistance, Bitcoin’s price continued to climb until it reached USD 21,500. However, it then fell back, struggling to keep its positive momentum. It now trades below USD 20,000 and near its 100 hourly simple moving average. It could gain more bullish momentum if it breaks above the USD 20,500 level and breaks the key support levels near the USD 20,000 and USD 19,400 zones.
The recent rally in Ethereum led to an increase in bitcoin price above the $20,000 resistance level. After rising above the $20,000 resistance, it surpassed the primary bearish trend line seen on the four-hour chart. The next significant resistance is near the $20,700 level, which is also close to the 50-simple moving average (4 hours, blue). Further gains could push bitcoin prices above the $21,000 resistance zone if this level is not breached.
Ethereum price outperformed bitcoin.
The price of Ethereum recently outperformed bitcoin. The cryptocurrency has risen over 15% in the past week. It recently broke the USD 1,880 resistance and is trading above USD 1,900. However, a downside correction is possible, and the price might drop to the USD 1,850 zone before continuing higher.
JP Morgan’s note to investors explains that the rise in Ethereum’s price is mainly due to improved liquidity and higher turnover in the Ethereum blockchain. As a result, Ethereum has recovered faster from the recent liquidity shock than Bitcoin. And it appears that the upcoming launch of Merge will boost the value of ETH.
Cardano (ADA) shows bullish momentum above the USD 0.42 support zone. However, a break below the session’s low would scupper all bullish intentions. It would open the door to the recent low of $0.39 and possibly a fresh low. Another critical hurdle for ADA buyers remains the $0.45 mark. Meanwhile, the RSI indicator is neutral at 44, and the oscillator is weak below 50.
The recent fall in price has led to bullish sentiment. The cost of Cardano is now an excellent opportunity to enter the market. The bulls have a bullish bias, and the relative strength index indicates that the bulls have the upper hand. However, if the bears keep selling, Cardano could drop to $0.50 in the short term.
U.S. dollar overtakes British pound sterling
The U.S. dollar has overtaken the British pound sterling for the first time since 1971, and the trend is roiling the global economy and creating winners and losers. Currency, falling nearly 5% to $1.0327. That was the lowest level since Britain switched to a decimal system in 1971. Sterling rose to $1.0605 but was still down about 1.5 percent by midday. This is the second most lopsided week for the pound against the dollar since 1971, and it is still on the downside despite the news that Britain’s finance minister announced a package of tax cuts. Traders and city economists were speculating that the Bank of England would raise interest rates to help the pound recover.
The crypto market has been in green territory since Wednesday when Bitcoin and Ethereum rose over two percent. The gains came amid reports that the U.S. Federal Reserve was planning to hold interest rates higher for longer. The rise in producer prices in the U.S. was also a positive sign, as they were higher than economists had expected.