What to Know
- Bitcoin lost momentum after falling below the $60,000 zone.
- A break lower could expose BTC to downside toward $50,000.
- Ethereum remains under pressure near the $1,500 support area.
- Rising U.S. rates and dollar strength continue hurting crypto sentiment.
- Recovery signals may emerge only if Bitcoin reclaims $64,000.
The backdrop right now is pretty miserable for crypto and pretty much anything not called the US dollar or a US index. Ultimately, money is running into the United States at the moment, and that weighs upon certain risky assets such as digital currencies. This entire world and scenario is currently weak to say the least.
And quite frankly, there are serious questions being asked about the viability of crypto. It just seems like dead money at the moment, and unfortunately, there wasn't much going on Tuesday to change that attitude as rates in America continue to climb slightly. And the US dollar continues to put pressure on crypto.
Bitcoin
In the Bitcoin market, we have fallen pretty significantly from the $60,000 level. That's an area that's a large, round, psychologically significant figure, and an area that a lot of people will be watching very closely.
If we break down below the swing low from just a few days ago, then it opens up a move to $50,000, and I really don't see much to keep that from happening. Short-term rallies could be thought of as a potential opportunity, but I wouldn't be overly excited about buying Bitcoin until it breaks above $64,000.
Ethereum
Ethereum doesn't look like it's going to fare much better. The $1,500 level is likely to be a bit of support.
Ethereum has even fewer use case scenarios than Bitcoin, because although it is the backbone of a lot of ecosystems, most of those ecosystems just aren't being used. This will continue to be the case from all signs at the moment.
If we break down below $1,500, that opens up a drop to $1,250, and it's not unless Bitcoin rallies that I think Ethereum has any shot. We are, in theory, kind of forming a bit of a double bottom, but this market looks miserable.
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