Bitcoin and Ethereum Fail to Recover, NEAR and ZEC Turn Green
Bitcoin price failed to gain strength above the USD 42,500 level. BTC started a fresh decline towards the USD 41,500 level. It is currently (11:30 UTC) showing bearish signs and might extend losses.
Similarly, most major altcoins might start another decline. ETH failed to clear USD 3,200 and there is a risk of a move below USD 3,000. XRP is moving lower below USD 0.750. ADA is still trading below USD 1.20.
Total market capitalization
After a minor upside correction, bitcoin price faced resistance above USD 42,500. BTC started another decline and traded near the USD 41,500 level. If the bears remain in action, it could slide below USD 40,500. The next key support is near USD 40,000, below which the price extend losses towards the USD 38,000 level.
On the upside, an initial resistance is near the USD 42,200 level. The first major resistance is near USD 42,500, above which the price might start a stronger recovery wave.
"Despite the crypto market being in oversold territory, it is widely impacted by global markets and economic conditions. Plans declared by the Federal Reserve for rate hikes in 2022, as well as reducing the rate of monthly bond purchases, have contributed to bitcoin’s selloff so far," Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock, wrote in an emailed note.
Meanwhile, on Wednesday, US inflation data will be released.
"The market expects the consumer price index (CPI) to rise 7.1% for the year through December and 0.4% over the month. If the figure released is larger than expected we can expect further sell pressure for bitcoin, as the markets are forward-looking and high inflation leads to more action from the Federal Reserve to control it," Sotiriou said, adding that the downside is
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