Crypto-versed: crypto prices hold the line
Risk aversion is yet to hit crypto assets as they defy the sell-off in stocks and bonds.
Despite expectations for even higher interest rates in the United States, crypto prices have found buying support. In this week’s Crypto Versed, we look at US rate and inflation expectations and analyse the technicals of Bitcoin, Ether, and the Crypto 10 Index .
Crypto assets defy rising rate expectations
Risk assets have succumbed to expectations of a far more aggressive US Federal Reserve. Following some strong data and hawkish jawboning from the central bank, interest rate markets are now implying a peak in the Federal Funds Rate above 5.5%, with the non-trivial risk of rates topping out at 6%.
Real yields - which is a combination of inflation and interest rate expectations - have also moved higher.
The US 10 Year TIPS yield has pushed back above 1.50% and to a three-two month high. The dynamic has pushed the US dollar up and stocks down; however, crypto prices have remained largely steady.
Three cryptos to watch
Here is a look at the technicals of three cryptos you can trade on the IG platform.
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Bitcoin
Bitcoin prices remain range bound. However, signs of slowing upside momentum continue. The RSI is trending lower, with the crypto sold down on every push above 25,000. The next key level of support appears at around $22,800.
Bitcoin daily chart
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Ether
Ether's price action points to resilience but diminished conviction amongst buyers. An ascending wedge is being carved out, with the price reverting to the 50-day moving average. A break below there could open a drop towards $1500, while resistance looks to be around $1660.
Ether daily chart
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Crypto 10 Index
The Crypto 10 Index is approaching trundling support, as it flashes signs of slowing momentum and an imminent reversal. A break of that level could open a fall to 7270, while short-term resistance appears around 7690.
Crypto 10 Index daily chart
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