The crypto market extended losses on Friday, as looming fears of an economic slowdown and the US Federal Reserve raising interest rates to stem inflationary pressures weighed on global investor sentiment. Ethereum plunged 10 percent and posted its biggest loss in the past month. It collapsed below $1,500 after the long-awaited software update – the Merge. With the exception of USDC and Tron, all other top crypto tokens were in the red on Friday. XRP and Avalanche each have failed about 4%. The global crypto market cap traded significantly lower at $959.65 billion, falling more than 3 percent in the last 24 hours. However, the total trading volume increased by a whopping 8% to nearly $84.22 billion.
Bitcoin went through a second day of scaring on $20,000 support on September 15 as markets evaluated the Ethereum Merge. Data showed that BTC/USD dipped below $20,000 overnight, only to recover marginally above the ceiling for a brief period. Risk assets took a nosedive on September 13. Down 13.5% from the weekly high at the time of writing, Bitcoin offered traders who always expected more losses, little inspiration. The S&P 500 and Nasdaq Composite Index were modestly up at the start of trading, like crypto still recovering from losses earlier in the week.
Meanwhile, altcoin markets were led by the story that Ethereum didn’t react positively to the merger. Despite the headlines, ETH/USD is down 8% on the day and fluctuated around $1470 amid significant volatility. However, the seamless transition from Proof of Work to Proof of Stake (PoS) was a “groundbreaking” achievement in itself. Ethereum’s upgrade to Proof-of-Stake may have put the crypto back in the crosshairs of the Securities and Exchange Commission (SEC). In a speech to reporters after the Senate Banking Committee on Sept. 15, SEC Chairman Gary Gensler reportedly said that cryptocurrencies and the intermediaries that give holders an “interest” allow their cryptocurrencies to define them as cryptocurrencies security under the Howey test, according to The Wall Street Journal.
On the macro front, US stock markets and crypto markets had risen ahead of the release of August CPI data on September 13, but the rally broke up when the data showed a rise in inflation rather than a fall. The negative data ended any hope of a near-term turnaround by the Fed and prompted a sharp decline in risky assets. Shares plunged around $1.6 trillion on September 13 and the market cap of the crypto markets fell below $1 trillion.
BITCOIN was trading in a ‘Rising Channel Pattern’. After facing stiff resistance at the upper trendline of the pattern, it witnessed a sharp correction and broke the pattern on the downside and dropped to $18,510 last week. Though BTC gave a breakout on the downside it did not test the previous bottom of $17,622 and reversed from $18,510. Post this move, BTC rallied up to $22,799. However, The prices were unable to sustain above the resistance of $22,500 and made the weekly low of $19,497. The asset has a strong support zone from $18,500 to $17,500, if it holds and sustains above the support then we can expect some consolidation or an up-move.
ETH after making the recent top of $2,030 witnessed a sharp correction and the prices fell almost by 29% and made the weekly low of $1,422. Post this move, the asset made a ‘Tweezer Bottom & Bullish Engulfing’ pattern at the recent low and rallied up to $1,789.7. ETH faced strong resistance at $1,750 (23% Fibonacci Retracement Level) and yet again witnessed a correction. The prices fell almost by 20% making the weekly low of $1,447.5. The asset has a strong support at $1,422 and $1,275 whereas $1,750 and $2,000 will act as a strong resistance.
Matic was consolidating and trading sideways from $0.76 to $0.84. The asset gave a breakout above the range and made the weekly high of $0.943. However, the prices faced stiff resistance at $0.95 and witnessed profit booking and dropped to $0.81. Matic is facing multiple resistance around $0.95 to $1. Hence, to witness a further rally it needs to close and sustain above $1. $0.75 and $0.625 will act as a strong support for the asset.
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- Computing power on the Ethereum Classic and Raven Coin blockchain networks, or hashrate, has jumped a few hours after mining on the Ethereum network, which underlies Ether (ETH), ranked second by cap crypto underlying the world, almost doubling the market.
- This Thursday South Korea’s foreign ministry is trying to get co-founder of now-defunct stablecoin provider Terraform Labs, Do Kwon, to return his passport, according to a local media report.
- The token management Platform Magna has closed a $15 million seed round with a valuation of $70 million led by venture capital firms Tiger Global and Tusk Venture Partners, co-founders Bruno Faviero and Arun Kirubarajan said.
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