Led by the leading cryptocurrency Bitcoin and the leading altcoin Ethereum, there are sharp drops across the market. When we look at the top 10 cryptocurrencies, we see that they are all red. With these sharp drops, Bitcoin went down to $ 18 thousand 390, while the leading altcoin Ethereum dropped to $ 1,287. So what is the reason behind the market decline? First of all, the interest rate announcements by the US Federal Reserve and the central banks of many countries this week create uncertainty on the market and create seller pressure. This situation is not only limited to the crypto money markets, but also sharp decreases are experienced on the Nasdaq, S&P500 and Dow Jones side of the major world indices.
What Will Happen to FED’s Interest Rate Decision?
One of the events that the markets are eagerly awaiting and most affected by is the interest rate decision to be taken by the US Federal Reserve. The Fed will announce its interest rate decision on Wednesday, and Fed Chairman Jerome Powell will give a speech after the decision. Regarding the Fed’s interest rate announcement, experts are looking at 75 basis points for sure, but it is among the rumors that the possibility of increasing 100 basis points is on the table. If we look at the previous speeches of Jerome Powell and FED officials, they stated that they would make all the interest rate hikes appropriately to reduce inflation. Until last week, the FED was expected to increase by 50 basis points or at most 75 basis points, but after the US August CPI data, which exceeded the expectations, a 100 basis point rate hike was among the options. Cryptocurrency markets and global markets began to price in this possibility.
How Are The Markets?
We said that the markets were in the red, but what is the latest situation in cryptocurrencies? We can say that Ethereum Classic came to the fore with a 16.67 percent decrease in the last 24 hours in the top 25 cryptocurrencies list in terms of market capitalization of the crypto money data platform CoinmarketCap. Ethereum Classic is at $ 28.28 with its decline. If we look at the crypto money that lost the most value after Ethereum Classic, we see Celsius, which lost 15% in 24 hours. Celsius is priced at $1.39 with this loss. According to 24-hour data, Bitcoin lost 7.81% while Ethereum lost 10.72% value.
BTC and ETH Support and Resistance
For Bitcoin, which continues to be priced at $ 18 thousand 390, the first of the support points that we will follow in a possible decline scenario is $ 18 thousand, and then $ 17 thousand 600 level is the support in a harder decline. If a worse scenario occurs and Bitcoin falls below $ 17 thousand, the support point to meet the leading cryptocurrency appears to be $ 16 thousand 900. When we looked at Ethereum, we said that it was priced at $1,287, and our first support point will be at $1,280 very soon. If Ethereum fails to hold on to this support, it could see the $1,220 and $1,180 support levels, respectively. In case of an uptrend, the first resistance level it will encounter is at $1,330, and if it gains better momentum, Ethereum can test the resistance points at $1,400 and then $1,470.
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