New Delhi: Major cryptocurrencies stabilised on Thursday after showing weakness in the past few days. They gained up to 17 per cent on low-level buying.
Barring stablecoins that are pegged to the dollar, all of the top 10 cryptocurrencies traded higher at 900 hours (IST). Polkadot climbed as much as 15 per cent, whereas Solana followed closely with over 14 per cent gain.
Declining risk over the Evergrande crisis in China also improved investor morale. Earlier cryptocurrencies saw a selloff along with equities as there was a risk of default by the Chinese real estate company. The impact of the selloff is still visible in seven-day returns of tokens, which are still in red.
Meanwhile, the US Federal Reserve said I would “soon” release research examining the costs and benefits of a central bank digital currency, or CBDC, Fed Chair Jerome Powell said on Wednesday.
Crypto enthusiasts and members of the financial industry are eagerly awaiting the Fed’s research, which was initially slated to be released over the summer, for hints on where policymakers stand on whether the United States should issue a CBDC.
Crypto Cart: Quick Glance
Bitcoin: $44,108, up 4.60 per cent
Ethereum: $3,105.19, up 8.20 per cent
Cardano: $2.28, up 11.26 per cent
Tether: $1, down 0.01 per cent
Binance Coin: $378.54, up 7.02 per cent
XRP: $1, up 9.09 per cent
Solana: $148.21, up 13.99 per cent
Polkadot: $31.90, up 16.26 per cent
USD Coin: $0.99, down 0.03 per cent
Dogecoin: $0.22, up 10 per cent
(Note: Price change in last 24 hours)
(Source: coinmarketcap.com, data as of 09.51 hours (IST) on September 23, 2021)
Tech View by Giottus Cryptocurrency Exchange
Bitcoin (BTC) has had a bumpy week, dropping from a high of $47,000 to a low of $39,600 in between. The move was not surprising, given BTC’s slippage from the key $52,000 level earlier in the month. Previously BTC bounced off $42,600 to trade rangebound for the week, before dropping to $40,000 and then $39,600 level in successive nights.
BTC may be in Wave 4 of the 5-Wave Elliot structure, indicating a lower high to the $45,000-46,000 range before dropping below the $40,000 level as part of Wave 5. BTC is also forming a head & shoulders pattern on the daily charts, strengthening the chances of a further downside in the short term. Should the pattern continue to play out, BTC will trade below the neckline to $36,000-38,000 levels, which also aligns with its key support levels. On the upside, it will have to battle the resistance at $45,400 before it can rally forward.
Investors should approach with caution and should wait on the sidelines before BTC begins to signal a clear direction.
Support: $42,400, $39,600, $38,000
Resistance: $45,400, $48,600
(Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC)
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)