Cryptocurrencies rise after Fed rate hike

Cryptocurrencies were trading higher today, fueling the industry gains added by the major indexes rising at yesterday’s Fed conference. Will digital assets support the bullish momentum?

  • Total market capitalization is back above $ 1 trillion. Bitcoin has risen above $ 23,000, Ethereum above $ 1,600. Major cryptocurrencies have traditionally been followed by altcoins such as Uniswap and Bitcoincash, with gains of up to the dozen percent. The liquidation resulted in the liquidation of nearly $ 202 million in short positions;
  • Cryptocurrencies remain extremely volatile tools. A negative publication of US GDP (-0.9% versus 0.5% expected) weakened the US indices. Yesterday, the cryptocurrency market also received news of the sale of more than 1.4 million shares of the cryptocurrency exchange Coinbase by the ArkInvest fund. The fund is managed by Cathie Wood, who has an interest in blockchain technology;
  • Cryptocurrency exchange FTX challenged Coinbase to make the shares available for trading in all states of the United States. FTX has acquired securities settlement provider Embed Financial Technologies. The FTX token saw 10% gains.

Bitcoin’s entry above $ 22,600 has again broken above the 200 session moving average (200 DMA) in the weekly range and defends the bullish scenario. The average has historically indicated a minimum price. At the same time, we see 2 other key averages DMA 111 and DMA 200. The first average represents the short-term psychological resistance that comes from the Pi Cycle Top which is around $ 35,000 and will act as a long-term resistance for buyers. Source: Glassnode

The CDD (Coin Days Destroyed) and MVRV (Market Value by Realized Value) indicators indicate a potential undervaluation of Bitcoin. CDD aims to indicate when the Bitcoin market is in complete loss and long-term investors, called hodlers, are selling. The MVRV indicator shows the price of Bitcoin compared to the average purchase price on the blockchain (realized price). Historically, levels below -1 (indicating a loss of much of the market) have indicated the formation of a bottom; in June, the indicator touched an all-time low and indicated -1.45. Source: Glassnode

Ethereum chart, range W1. The second largest cryptocurrency is showing strength against the general cryptocurrency and Bitcoin market. The token has been trading above its 200 session average ($ 1150) in the weekly range for nearly 3 weeks and continues its rally caused by the so-called “The Merge” scheduled for September 19th of this year. The event will see Ethereum become up to 99.5% less energy-intensive, with transactions validated in a Proof of Stake model. Investors, however, are more interested in the expected “trouble bomb” in this regard, which could freeze supply by eliminating miners. Source: xStation5

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