06 Oct 2022 Morgan Hayze
Are Cryptos Heading Towards Another Bottom?
The crypto market has recovered a part of its losses in September, but still, experts are considering that the crypto rally may not last for long.
For example, Bitcoin prices went up by 2.57% in the last 24 hours, while Ethereum also surged by 1.8% to push the total crypto market to $959,4 billion. Ripple also showed a hefty 5% price increase, while Dogecoin (DOGE) managed to record an 8% price increase.
However, crypto analyst and CEO of Eight Global Michael van de Poppe, believes that the crypto market can see a slight correction due to the US dollar rallying. Furthermore, US unemployment data will also be released on Friday, which, according to van de Poppe, may have a bad effect on the market.
Why is the pressure increasing?
The crypto market is still showing bearish signs, despite the price rally, due to the Federal Reserve remaining hawkish. Indeed, the United Nations has begged global economies to soften their aggressive stance, but the American central bank shows no signs of complying.
Whether the Fed would keep on its interest rate hikes will be clear on Wednesday when Atlanta Fed’s president Raphael Bostic will deliver a key speech. Furthermore, oil prices will create additional uncertainty, as the Organization of Petroleum Exporting Countries (OPEC) is mulling over the biggest supply cut since 2020 to raise prices.
Bitcoin, Ethereum, and Ripple showed that the current macroeconomic landscape can have little to no effect on the crypto sector. However, the top formation at $20,500 may indicate a hefty correction incoming, especially backed by the Relative Strength Index (RSI), which has also approached a blockade.
In order for Bitcoin to continue its upwards momentum, the leading crypto has to first withstand a minor retracement to $19,800 before going up. If Bitcoin manages to overcome the $20,737 price tag, it would reverse the trend.
Ethereum managed to record an 8.7% price increase, but the price of the second-largest crypto to date fluctuates between the $1,280 support level and the $1,423 resistance. Investors are preparing to see Ethereum rising to the $1,571 resistance level, with a bolder target at $1,730.
On September 28 Ripple bounced off the $0.381 to $0.433 demand zone, rallying 19 percent to form a local top at $0.508 per XRP. Investors should see the XRP price retest the $0.561 to $0.596 if everything goes according to plan. However, if Ripple's price fails to maintain the higher low at $0.437, investors would see Ripple falling down to around $0.381 per token.Bitcoin Ethereum Ripple btc eth Ethereum news Bitcoin price XRP bitcoin news cryptocurrency news crypto news Crypto Price Ethereum Price Ripple Price