On Tuesday, bitcoin (BTC) rose 2.16%. BTC reversed a 0.77% loss from Monday and ended the day at $23,246 BTC ended a five-day losing streak and ended the day at $23,000 for the first time in three sessions.
A mixed start to the day saw BTC drop to an early low of $22,742 before making any move. While avoiding the first major support level (S1) at $22,535, BTC rose to $23,350 in the late afternoon. BTC broke the first major resistance level (R1) at $23,060 to enter the range of the second major resistance level (R2) at $23,365 before retreating.
Fed Chair Powell provided a breakthrough on Tuesday
Fed Chair Powell delivered a breakout session on Tuesday. On Friday, the US jobs report and the ISM non-manufacturing PMI raised concerns about the Fed’s more aggressive interest rate path to bring inflation to target. Fed Fear has left Bitcoin on a five-day losing streak going into Tuesday’s session.
But the Fed chair is less hawkish than expected and offered riskier assets with much-needed support. The non-binding figure was good enough for the markets, supporting a 1.90% gain in the Nasdaq and a weaker US dollar. The bullish NASDAQ Index provided support to the cryptocurrency market.
While Powell provided support on Tuesday, sentiment against the Shanghai hard fork continued to provide support for ETH price. Unhindered progress towards the Shanghai hard fork will continue to be a tailwind for ETH.
For BTC and the broader crypto market, reducing the risk of contagion and reducing fears of an economic recession in the United States are also a tailwind. However, regulatory risks remain a headwind, as investors need to keep an eye on the ongoing SEC v Ripple case, the outcome of which could have a significant impact on the regulatory landscape.
Today, the updates on the Zhejiang test network and the Shanghai hard fork network will attract a lot of attention. However, the lack of updates will leave the pair in the hands of the FOMC members and the Nasdaq index.
This afternoon, FOMC members Williams, Waller and Barr will speak. The hawkish talk will send the NASDAQ and the broader crypto market into the red.