12 Dec 2022 Marsha Tusk
Bitcoin And Ethereum Are Down As The Crypto Sector Awaits The US CPI & FOMC Rates
The crypto market started this week with a downward correction, sending Bitcoin and Ethereum down 0.86%, and 1.65%, respectively, in the past 24 hours. Bitcoin started its downward journey with a slight peak at $17,243 but slid to a low of $16,900. Ethereum’s price performance followed suit, with the altcoin leader recording a descent from $1,281.78 to a low of $1,243.79.
Why is the market plummeting on Monday?
Wall Street is expecting two major developments in the next few days, raising concerns that the disinflation trade has gotten ahead of itself.
For instance, November’s inflation data is anticipated to reflect easing price pressures, with a 0.3% increase from October. Furthermore, inflation is expected to fall from 7.7% to 7.3% on an annualized basis. The decrease, however, is not enough as experts consider much more effort needs to be done in order to bring inflation down further.
Another pivotal moment for the crypto sector would be the Fed slowing its rate-hiking pace to a half-point. The half-point increase means a rise from 4.75% to 5.25% point. That, combined with the FOMC meeting, scheduled for December 14.
How the crypto market would react?
The price of Bitcoin at the moment is $16,996.83, with a $19.1 billion 24-hour trading volume. The BTC/USD pair has increased by around 1.4% over the past 24 hours, but its market cap decreased to $327 billion.
Technical analysis tools show that Bitcoin has broken through a channel to the upward above $17,000. On the downside, BTC may decline until it reaches the $16,750 area which serves as the next support; below that, $16,365 would serve as the next support.
Ethereum is following suit, as the altcoin leader fell to a current price point of $1,251.67 per ETH. Ethereum’s technical analysis shows that the altcoin leader has broken through a $1,259 support level on the 4-hour chart, and a decline below this level might expose ETH's price to the $1,221 level. A further slide would set $1,176 as ETH's next immediate support. The MACD, RSI, and 50-day moving average also show a negative sentiment.
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