The crypto market has been losing momentum as the price of Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) start trading in the red. The largest cryptocurrencies by market cap might experience further losses as macro-economic factors keep exercising a negative influence on risk-on assets.
At the time of writing, the crypto total market cap stands at $1.09 trillion after experiencing rejection at the $1.2 trillion mark. This has led to minor losses for Bitcoin (2.2%), and Binance Coin (7%), only Ethereum has been able to preserve some of its last week’s gains.
Analyst Justin Bennett believes the crypto market has been negatively impacted by the uptrend in U.S. dollars. The currency saw a major push to the upside at the start of 2022 on its monthly chart and seems to be attempting to reclaim 2022 levels on higher timeframes.
This could translate into more losses for risk-on assets, such as equities and cryptocurrencies; more economic uncertainty as inflation trends higher in decades; less liquidity across global financial markets. Bennett said the following whilesharing the chart below: “Expect stocks and crypto to struggle while the US dollar is doing this. The $DXY just took out 107 on its way to 107.40. I still think we see 112-113. Be careful out there (…). The trend is your friend…unless it’s the $DXY. 112-113 first, but most likely 120 in the next few months. USD up means risk assets down.”
DXY Index (U.S. Dollar) breaking above important resistance on the monthly chart. Source: Justin Bennett
The largest crypto by market cap, Bitcoin, saw a yearly low at around $17,600. As NewsBTC reported, Fidelity’s Director of Macro Jurrien Timmer believes this level is on par with the cryptocurrency’s previous bottoms and expects that price point to operate as critical support.
Bitcoin price settled below the $24,000 level to move into abearish zone. BTC gained bearish momentum below the $23,500 and $23,200 support levels.
It opened the doors for more losses below the $23,000 level and the 100 hourly simple moving average. Finally, the price found support near the $22,700 zone. A low was formed near $22,715 and the price is now consolidating losses.
Bitcoin price is now trading below the $23,200 level and the100 hourly simple moving average. On the upside, an immediate resistance is near the $23,150 level. It is near the 23.6% Fib retracement level of the key drop from the $24,440 swing high to $22,715 low.
The first major resistance on the upside sits near the $23,550 level. It is near the 50% Fib retracement level of the key drop from the $24,440 swing high to $22,715 low.
Source: BTCUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $23,550 on the hourly chart of the BTC/USD pair. The main resistance is forming near the $23,750 zone and the 100 hourly simple moving average. A close above the $23,550 and $23,800 resistance levels might start another increase.
In the stated case, the price may perhaps climb above the $24,000 resistance. Any more gains might send the price towards the $24,500 level.
Hourly MACD – The MACD is now gaining pace in the bearish zone
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level
Major Support Levels – $22,715, followed by $22,500
Major Resistance Levels – $23,200, $23,550 and $23,800
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