Bitcoin drops to 3 month-low after US Fed signal


New Delhi, Jan 7 | Bitcoin declined to three-month lows on Friday as minutes of the latest US Federal Reserve meeting raised the possibility the central bank could boost interest rates as soon as March, Barrons reported.

Bitcoin traded Friday at $42,086, down 2.1 per cent over the past 24 hours, according to CoinDesk. The world’s largest cryptocurrency fell to as low as $41,012, hitting the lowest level since September 29 and taking the weekly decline to 12 per cent, CoinDesk reported. Bitcoin’s record high is $68,990.90.

Ethereum, the second-largest digital currency, has declined 4.9 per cent over the past 24 hours to $3,231, the report said.

Analysts at Fundstrat said in a note that near-term technical and cycles for cryptocurrencies remain bearish, “and suggest further weakness might unfold into this Spring before any meaningful low is at hand”.

The analysts said key short-term support for Bitcoin is estimated at around $39,500, and then $29,000 “being more serious, as this held from May through July 2021”.

Bitcoin’s tumble followed the release on Wednesday of the Federal Reserve meeting minutes, which indicated that inflation readings and tight labour conditions could warrant an interest-rate increase “sooner or at a faster pace than participants had earlier anticipated”.

The central bank also hinted at a potential reduction of its $9 trillion balance sheet.

Source: IANS

Next Story

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

The benchmark Indices Nifty started on the positive side after continuous sell off in last week and has managed to settle at 15842.30 with 60 point gain or 0.38 percent. However Nifty has failed to regain 16000 levels prior to LIC listing.

While Bank nifty has managed to settle at 33597.60 levels after gaining 1.44 percent. On the sectoral front, Nifty PSU Bank, Nifty Realty and Auto have contributed 2-3 percent gain on closing basis. On the flip side Nifty IT and FMCG ended with losses of 0.75 percent and 0.35 respectively. In Nifty, EICHERMOT, APOLLOHOSP and UPL were the top gainers while ULTRACEMCO, SHREECEM and ASIANPAINT were the prime laggards.

Technically, after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels.

Traders may find buying opportunities for short term as if 15650 levels is protected. In the hourly chart, with support of the middle Bollinger band short term upside movement is expected. Stock specific action would drive the market in coming days too.

On the derivatives front, the highest call OI is at 16000 strike price followed by 16200 strike prices while on the put side, highest OI is at 15500 strike price. INDIA VIX closed at 24.53 with gain of 4.43 percent intraday indicating volatility is going to remain till weekly expiry . On the other hand, Bank nifty has support at 32600 levels while resistance is placed at 34500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India



Please enter your comment!
Please enter your name here