- The last day has seen the large cryptocurrency pairs fall.
- The market has however rebounded a bit.
- ETH price looks for equilibrium searching for direction in a possible sideways patch.
The last day has seen the large cryptocurrency pairs fall in value, causing a bit of panic in the market. This comes after Bitcoin(BTC) and Ethereum(ETH) fell below $20.9k which was last seen in mid-July. However, the market has rebounded a bit and cryptocurrencies are seeing higher levels of short trades coming in as people fear such drops as earlier seen in June when the price of bitcoin jumped about 4% to $20,881.56, according to related news.
BTC/USD 1-day price chart, source: Trading view
In June the price went further downwards going as low as $17,958.05. That was its lowest point since December 2020.
The move arrived on the heels of bearish headlines for the cryptocurrency industry that began with pressure from macroeconomic forces. Wholesale prices rose at a near record annual pace and the Federal Reserve hiked its benchmark interest rate by three-quarters of a percentage point, the most significant increase since 1994.
While investors will welcome the rebound, bitcoin still sits 70% below its all-time high in November. It’s down 57% year-to-date. Many have suggested a market bottom could be close. However, with so much economic uncertainty remaining, bitcoin still has more downside potential, according to Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank.
Ethereum’s price on the other hand could be showing some relief as investors and traders are readjusting and getting used to the upcoming backdrop of inflation woes in the global markets. Although there is a feeling that there is less disposable cash to spend on cryptocurrencies, that does not mean that bulls cannot shift the needle further to the upside but expect those moves to not be that substantial in the longer term.ETH price is thus looking for equilibrium, searching for direction in a possible, sideways patch for a breakout either way.
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