Bitcoin and Ethereum, like the rest of the crypto world, is preparing to close the week and the month still in negative.
This week Bitcoin has lost 5.50% to $ 19,430 and Ethereum has lost 3.50% to $ 1,060 reversing a rise that seemed set to last.
Massive rises by the Federal Reserve and other central banks brought risk-off back to the markets and accentuated the correlation between the decline and other financial assets and cryptocurrencies.
As for Bitcoin, the new loss of $ 20,000 is a very worrying sign that brings us back to the support in the $ 17,550 area (green line on the chart) as the last bastion to avoid new lows. Only a rise above $ 21,300 and a long reversal of the supertrend could generate new optimism.
Ethereum is also in the same situation with the support in the $ 870 area represented by the last low (green line on the chart), while the supertrend is turning dangerously short with a close at $ 1,050.
As long as $ 1,200 is not permanently exceeded, it will be difficult for the calm to return.
The whole cryptocurrency sector is suffering from aggressive decisions on rates and until liquidity returns, it is unlikely that there will be substantial rises, especially due to inflation that does not tend to decrease as can be seen from the latest macroeconomic indicators.