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The fear that has been grappling the Russian markets from October caught up with global markets as geopolitical tensions surrounding Ukraine continue to rattle the worldâ€™s economic stability. Combined with the fear around the increase in interest rates by the US Federal Reserve, global financial markets took a beating this week. Top cryptocurrency assets have shed more than 15% in the last seven days as investors leaned into safe assets such as the US Dollar. Bitcoin (BTC), after experiencing some strong volatility to the downside, has managed to recover a bit to trade near $36,000 today. In this article, we will briefly look at the price actions of major cryptocurrencies in the past week and the short term outlook for BTC.
More Struggles for Bitcoin
BTC has broken down far below the crucial psychological level of $40,000 to retest $32,900, a price level which was last seen only in July 2021. The bounce was quick as buyers stepped in to get the price above $36,000 in the last 24 hours. However, the demand at the higher price levels has fallen flat as relief rallies are met with high selling pressures. On the downside, the short term support for BTC is at $34,000 and $32,900. The new overhead resistance levels have formed at $37,300 and $39,600. BTC is currently trading at $36,500.
Altcoins Under Pressure
The second largest cryptocurrency Ethereum (ETH) and the rest of the altcoin markets were in a free fall after BTC lost crucial support. ETH has seen just one green day in the last 8 days and it dropped to as low as $2,160. However, with BTCâ€™s aid, ETH has rallied back above $2,400 for now and is looking to consolidate before going up further.
Cosmos (ATOM) was the only cryptocurrency to show considerable strength as it rallied over 15% over the last day. The strength is attributed to upcoming airdrops for Cosmos stakers and bridge implementation between Cosmos and Polkadot. Tokens of protocols built on Cosmos like JUNO, STAR, CMDX also rose by 6% as the gains trickled down. Avalanche (AVAX) registered a 4% gain as it is a leading front runner for alleviating the high gas issues and network congestion faced by ETH.
Fantom (FTM), a layer-1 ETH alternative, also achieved an impressive milestone as its total value locked (TVL), which is a proxy for growing adoption, overtook Avalanche and Binance Smart Chain to become the third largest Decentralised Finance (DeFi) protocol. Multichain, 0xDAO and Spookyswap are some of its biggest TVL contributors. FTM has also surpassed ETH in terms of active daily transactions making it a worthy contender among DeFi platforms. However, FTM is currently trading at $2.3 with a weekly decline of 18% making it undervalued with respect to its TVL.
Short-term outlook for Bitcoin
Though BTC has recovered after posting some heavy losses, the global outlook on all financial markets is still bearish. With almost all the major market indexes tanking, all eyes are on the US Federal Reserveâ€™s meeting tomorrow as weary investors pray for a dovish stance (no interest rate hike) from the Chairman. We expect the crypto markets to remain volatile in the next few weeks and advise investors to manage their risks accordingly.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.