Crypto-versed: crypto prices defy bearish market sentiment
Despite a drop in stocks as interest rate expectations rise, crypto tests multi-month highs.
Crypto prices have held up, despite broader bearish market sentiment. In this week’s Crypto-versed, we take a look at what’s happening in financial markets, and the charts of Bitcoin, Ether, and the Crypto 10 Index .
Crypto prices buck broader bearishness
Fears of higher interest rates and subsequently weaker economic activity and financial conditions have returned to markets. The dynamic has pushed equity prices down, with yields rising and the US dollar bouncing back. Despite typically being negatively correlated with yields and the dollar, and positively correlated with equities, especially US tech stocks, bitcoin prices climbed last week.
In what has some of the hallmarks of a short squeeze, traders are waiting to see if the traditional correlations reassert themselves, or whether something else is afoot.
Three cryptos to watch
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Bitcoin
The price of Bitcoin has pushed to six-month highs. However, price signals suggest a possible pullback. Resistance at $25,000 appears formidable, while there is a bearish divergence has emerged on the daily RSI. A break of $25,000 could open a run towards $28,700, while support is around $22,760.
Bitcoin daily chart
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Ether
Ether also looks at risk of further downside, as momentum fades. Price is breaking technical support at $1650, with $1500 the next level to watch. The 20-day moving average may also offer some support, while on the upside, $1790 is a key level of longer-term resistance.
Ether daily chart
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Crypto 10 Index
The Crypto 10 Index is also on the cusp of a deeper reversal. A bearish divergence can be seen on the daily RSI, with a short-term level of support coming into view at roughly $7680. A break of that level may open a test of the low 700s. Resistance meanwhile appears at $8050.
Crypto 10 Index daily chart
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