After a brief boost, Bitcoin and other major crypto tokens were back in the red on Wednesday. Persistent concerns about the US debt ceiling add to the angst of traders around the world, who are oscillating between bullish and bearish sentiments in the digital asset market.
After a short-lived rise, Bitcoin returned to the drop zone on Wednesday, as the largest crypto token fell around 2 percent to break the $27,000 mark once again. Its largest pair, Ethereum, was also down more than 2 percent, but managed to hold $1,800 levels. Altcoins were also in the red.
"Bitcoin has maintained its trading level above $27,000, with the price fluctuating between $26,500 and $27,500 for the past few days. Concerns about regulatory challenges in the crypto market and macroeconomic uncertainties, such as the stagnation of the US debt, could have affected market liquidity, said Edul Patel, CEO and co-founder of Mudrex.
โOn the other hand, the Ethereum price has been holding below $1,920 for the past 16 days, which is especially concerning given that the last breakout attempt on May 6 lasted less than 24 hours,โ he said.
All major crypto tokens, including US dollar-pegged stablecoins, were trading lower on Wednesday. Litecoin fell 4 percent, followed by a 3 percent drop in Avalanche and Solana. Dogecoin, Shiba Inu, Polkadot and Tron were each down 2 percent in early trading.
The global cryptocurrency market capitalization was trading lower, falling to $1.13 trillion, as it fell more than one percent in the past 24 hours. However, total trade volumes were up about 2 percent to $28.008 billion.
Giottus Crypto Platform Tech View
Tron (TRX) has witnessed a massive rally in the past week and continues to gain momentum. The asset has breached the top of the ascending channel ($0.076 level), indicating an inherent bullish bias.
The candlesticks have been inching towards the $0.080 level over the past two days, which acts as the nearest resistance level. If the momentum continues, further gains could push the price towards the $0.085 levels. However, the positive development may lead to short-term corrections from the current level and may reach support levels at $0.072 followed by $0.067. The RSI level currently sits at 76.5, indicating strong optimism for Tron.
Main levels:
Support: $0.072, $0.067
Resistance: $0.080, $0.085
(Opinions and recommendations provided in this section are those of analysts and do not represent those of Business Today. Please consult your financial advisor before taking any position in any of the listed assets.)
