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On Friday, cryptocurrency Bitcoin BTC/USD sold off sharply and fell to a low of $20,868.85.
By market capitalization, BTC is down by 13% in the last seven days and was rebounding on Saturday to $21,256.34.
Similarly, Ethereum ETH/USD price fell, falling by almost 18% in the past seven days, and trading at $1,630.26 on Saturday.
The downswing could be attributed to the high inflation data in Germany. According to the CME FedWatch tool, the probability of the U.S. Federal Reserve raising the interest rate by 75 basis points has increased to 44.5%, from 41% the previous day.
So far this year, cryptocurrencies have seen a major fall due to Fed rate hikes and ultra-high inflation.
Also Read: This Analyst Believes Bitcoin, Ethereum Will Surge To All-Time High Soon: Here’s Why
According to the pseudonymous trader known as Rekt Capital, ETH needs to hold its position to recover from the current downswing. It could close as low as $1,550 and still recover.
$ETH is now dipping in an effort to successfully retest this orange area as support
Hold orange as support & ETH will be able to move towards $2250 (black)
Downside wicking to ~$1550 would be fine as long as #ETH Weekly Closes inside this current orange area#Crypto #Ethereum https://t.co/mkyuZSLx1p pic.twitter.com/EmgOuqVOxg
— Rekt Capital (@rektcapital) August 19, 2022
The analyst says Bitcoin has lost the support of the 200-week moving average with the current crypto market meltdown. However, recovery is possible with the relief bounce.
If #BTC indeed confirms a breakdown from the 200-week MA…
Then it is possible that a relief bounce into the 200-week MA to flip it into new resistance could take place
The 200-week MA represents the price point of ~$23200$BTC #Crypto #Bitcoin pic.twitter.com/mZ7jYP9f1L
— Rekt Capital (@rektcapital) August 19, 2022
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Image and article originally from www.benzinga.com. Read the original article here.