ETH fell through the first major support level (S1) at $1,250 and the second major support level (S2) at $1,230. However, after finding support in the afternoon, ETH broke the S2 barrier to end the day at $1,232.
On Wednesday, Bitcoin (BTC) fell by 1.45%. BTC reversed its 0.70% gains from Tuesday, ending the day at $16,846. A bearish session saw BTC end the day below $17,000 for the fourth time in eight sessions.
A mixed morning saw bitcoin climb to an early morning high of $17,156 before retreating. BTC failed to reach the first major resistance level (R1) at $17,166, and BTC fell to $16,701 in the morning. BTC fell through the first major support level (S1) at $16,965 and the second major support level (S2) at $16,836.
However, after finding support in the afternoon, BTC broke through R2 to end the day at $16,846.
Recession Fears and Nasdaq Send Bitcoin and ETH South
US economic indicators failed to assuage investor fears of a US recession. On Wednesday, the Nasdaq Composite fell 0.51% in response to talk by US banks of a recession in the United States.
Early in the Wednesday session, economic indicators out of China weighed on riskier assets. Doomsday trade data, which included a sharp drop in imports and exports, fueled fears of a global recession.
Uncertainty in Fed policy added to the bearish mood. Despite the US jobs report and the ISM Non-Manufacturing PMI, markets are still betting on the Federal Reserve in December.
A bullish US CPI report may rule out Fed Chair Powell’s talk of slowing the pace of interest rate hikes. The US Consumer Price Index report is due on Tuesday, December 13th.
Today, US economic indicators are unlikely to have a significant impact, with the focus on the weekly jobless claims. Initial jobless claims must fall below 200,000 or rise to 300,000 to trigger demand. With the stats on the lighter side, risk sentiment in the market and the Nasdaq Composite Index will continue to provide guidance.
In addition to the Fed and US statistics, investors will need to keep an eye on cryptocurrency news. Updates on FTX and regulator talk will continue to be a focal point, as the threat of a global recession will likely make the cryptocurrency market more sensitive to talk of a tougher regulatory environment.