This week in Crypto: what is driving crypto assets
A look back on the week in crypto markets and analysis of Bitcoin, Ether, and Litecoin.
Prices consolidate as technicals point to pullback
The run higher in cryptocurrencies has paused, as technical indicators point to a possible pullback. In this week’s Crypto Verse, we take a glance at what’s happening in the crypto market right now and analyse the technicals of Bitcoin, Ether and Litecoin.
Crypto consolidates despite “less-hawkish” Fed
The face-ripping rally in crypto-assets to begin 2023 has paused, with prices consolidating in the past week. This is despite what was, based on the general market commentary, a so-called “less-hawkish” US Federal Reserve, which met last week and hiked interest rates by 25 basis points. Immediately after the decision, market rates moderated expectations for future rate hikes, discounting one further hike from the central bank, before eventual cuts at the back end of the year.
Although this dynamic drove a rally in risk assets, a drop in the US dollar, and a fall in yields and yield-sensitive assets like gold, the move proved short-lived, with Bitcoin prices moving lower in the days since the meeting.
Three cryptos to watch
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Bitcoin
Bitcoin has consolidated in recent weeks, with some technical indicators suggesting the risk of a possible pullback. A bearish RSI divergence has become clear on the daily charts, with support currently around the 20-day moving average and $22,800. A break of those levels could open a fall towards $21,400. Current resistance appears to be around $24,000.
Bitcoin daily chart
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Ether
The price of Ether looks as though it’s losing upside momentum, with a bearish RSI divergence also evident on the charts. However, price action continues to carve out higher-highs and lower-lows in the short-term. The crypto is finding support around the 20-day moving average, while resistance exists around $1650. A break of that level could open a run towards $1790, while a break of support could see a pullback towards $1500.
Ether daily chart
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Litecoin
The price of Litecoin is in a short-term uptrend but is also displaying signs of slowing upward momentum. Trendline support is coming into view, which if broken opens a possible drop to a confluence of levels around $91.80. Resistance might be found at the market's most recent higher at $102.36.
Litecoin daily chart
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