- Bitcoin and Ethereum are up more than 4% in the last 6 hours.
- The rise coincides with news that the US economy has contracted.
- BTC and ETH are currently trading around key resistance levels.
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Bitcoin and Ethereum, the top two largest cryptocurrencies by market capitalization, appear to have entered a new upward trend despite the news that the US economy has entered a so-called “technical recession.”
Bitcoin and Ethereum rise
Bitcoin and Ethereum have seen significant gains in the last few hours after the announcement of the latest US GDP.
Cryptocurrency market capitalization increased by nearly $40 billion following reports that the U.S. economy contracted for two straight quarters.Bureau of Economic Analysis Affirmed US Gross Domestic Product (GDP) fell by 0.9% on an annualized basis.
Bitcoin seems to be in the limelight as the US economy is currently in a technological recession. Since the GDP figures were released, the flagship cryptocurrencies have risen by more than 900 points in market value. Now that Bitcoin’s bullish momentum has been confirmed, the top cryptocurrencies show early signs of wanting to rise. ..
Tom DeMark (TD) Sequential has shown a sell signal on the 4-hour chart. Bearish signals anticipate a retracement to $23,260 or $22,690, but BTC is showing strength as it approaches $24,000. A 4-hour candlestick just above this key resistance area will invalidate the short-term pessimistic outlook and a rally to $25,500 is possible.
Similarly, Ethereum has enjoyed a price increase of almost 7% in the last 6 hours. The upward rise allowed ETH to break through critical areas or resistances for $ 1,650. Currently, TD’s $ 1,750 risk line seems to be the next hurdle that ETH must overcome to move further.
A decisive 4-hour candlestick above $1,750 could create enough bullish momentum to propel Ethereum to $1,830 or $1,900. Still, ETH needs to hold above his $1,680 to validate this bullish thesis. Failure to do so could trigger a profit-taking surge that pushes Ethereum back towards $1,600 or $1,550.
Market participants may think the latest US GDP numbers are priced in while macroeconomic conditions continue to deteriorate. Negative growth could also force the Fed to switch to accommodative monetary policy sooner than expected. Crypto assets seem to be finding the strength to recover in the short term, despite a great deal of uncertainty in the global economy.
Disclosure: At the time of writing, the author of this work owned BTC and ETH.
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