Cryptocurrencies, including Bitcoin and Ethereum, rallied strongly over the weekend and continued to rise early on Monday, challenging the overall downward momentum that has dominated for nearly two weeks.
After falling to $19.570 on Friday, BTC/USD indeed rose to $16.3 on Monday morning with a 22.775% show. Meanwhile, ETH/USD rallied 1370% from Friday's low of $1635 to $19,3 this morning.
Why did Bitcoin and Ethereum rise on Sunday?
Note that the majority of the backlash is significant announcements by the US Federal Reserve on Sunday.
The authorities linking banking have indeed announced a support scheme for Silicon Valley depositors, a crucial step in the fight against the systemic panic caused by the cost of this bank exposed to the crypto industry.
Depositors at SVB and Signature Bank, owned by bankruptcies in New York, which closed on Sunday for fears of systemic contamination, will have access to their deposits under a variety of measures approved by their institutions over the weekend. The signature became a popular source of funding for the cryptocurrency company.
The fact that deposits are now protected therefore reduces the risk of domino effects and contagion to the business of Bitcoin, Ethereum, and other cryptocurrencies that many other digital assets welcomed on Sunday.
A more flexible Fed expectation also encourages them to use cryptocurrencies.
The recent difficulties of the American banking sector also reinforce the need for the Fed to delay or even take a break from interest flows in order to get into trouble with its other businesses.
Recall that last Friday's NFP report on US employment, which showed a moderation in wage growth, led the market to now expect a 50-point rate hike for the next Fed meeting, instead only an adventure of 25 points. point.
However, the odds that the stories in rates will slow or even stop the rise for cryptocurrencies like BTC and ETH is also a bullish factor.
Key events for Bitcoin and Ethereum this week
Regarding the next major events likely to affect cryptocurrencies, we will of course continue to monitor the evolution of the US banking sector's issues. In particular , we will closely monitor the intervention of US President Biden at 14.00:XNUMX on Monday .
Inflation data is also expected, along with the US CPI on Tuesday, the US PPI on Wednesday, the ECB meeting on Thursday and the Eurozone CPI on Friday. If the data turns out better than expected, speculation of larger Fed rate hikes to the detriment of Bitcoin and Ethereum could continue.
Technical background on BTC/USD and ETH/USD
From a graphical point of view, several significant threshold crossings have been recorded in Bitcoin since Friday.
The cryptocurrency is currently facing a resistance zone consisting of the $22.600 threshold and the 23.000-day moving average currently combined with the $50 threshold. A nest above the threshold will target $24.000/$24.250 and next year's highs around $25.250. If Bitcoin corrects, the first significant support will be around $21.600.
As for Ethereum, it should be noted that the crypto broke the main resistance of $1600 and the 1500-day MA, currently at $50.
The upward move will continue, with the next target at $1700 and the year high at $1742. In case the drop is sent back, the first boost to follow will be the legacy redirect to send 1500.
Source: https://paybis.com/