ETH Eyes Below $1,180 on Recession Fears and a Bearish Nasdaq

On Tuesday, Bitcoin (BTC) fell by 1.33%. BTC reversed its 0.59% gain from Monday, ending the day at $16,720. It should be noted that BTC failed to revisit $17,000 for the seventh consecutive session while seeing red for only the seventh time in ten sessions.

A volatile start to the day saw BTC surge to an early morning high of $16,987. However, when BTC broke below the first major resistance level (R1) at $17,001, BTC dropped to an early evening low of $16,617. BTC fell through the first major support level (S1) at $16,852 and the second major support level (S2) at $16,759 to end the day at $16,720.

Recession and Fed Fears Send Nasdaq and Cryptocurrencies into the Red

Tuesday’s session was quiet. While the European and US markets reopened after the holidays, there was no cryptocurrency news that attracted interest. The lack of physical events left Bitcoin and Ethereum in the hands of the Nasdaq.

Ahead of Tuesday’s session, the Nasdaq Mini-Index provided much-needed support. The Chinese government has announced additional COVID-19 mitigation measures to support riskier assets.

However, the bullish mood did not last long. Concerns about rising demand for commodities fueled fears of another rise in inflationary pressures that could force the Federal Reserve to take more hawkish policy moves.

The Nasdaq fell 1.38% on Tuesday, with the Nasdaq mini index down 3 points this morning.

Today, there are no US economic indicators to influence, leaving cryptocurrency news and the Nasdaq index to guide investors. Fed hawks and the threat of a hard economic downturn increase the possibility that the crypto winter will extend into the second quarter of 2023.

Financial and regulatory uncertainty is likely to continue to test investors as FTX news floods cryptocurrency news.

Leave a Reply

Your email address will not be published. Required fields are marked *