Bitcoin and other crypto tokens were struggling to hold gains on Wednesday as the digital asset market digested the negative blows from Binance and FTX. However, the majority of the tokens were inching up. The potential selling and layoff news is weighing on digital markets, while traders are on tenterhooks ahead of US economic data due later today.
A joint policy paper on crypto published by the IMF and FSB warned jurisdictions against implementing blanket bans to mitigate risks associated with the sector, and recommended targeted restrictions and sound monetary policy instead. Targeted restrictions might come in handy for emerging economies in particular, it said.
Bitcoin posted mild gains as the largest crypto token rose about half a per cent, flirting with $26,000-levels. Its largest peer, Ethereum, also inched up slightly, to remain below $1,600-mark. Price action in the altcoins remained on the positive side in the morning.
Bitcoin’s trading price crossed the $25,900 mark, which could be a reflection of renewed market attention on the Bitcoin Spot ETF race. Franklin Templeton, a prominent asset management firm, has recently filed an application with the US SEC, which may have caused bullish sentiment in the market, said Edul Patel, Co-Founder & CEO at Mudrex.
“Moreover, the number of wallets holding 0.1 bitcoin surged to a record-breaking 12 million yesterday, indicating a rising level of confidence among market participants in Bitcoin. Meanwhile, Ethereum has been trading around the $1600 level,” he added.
Barring a few exceptions, all top crypto tokens were trading higher on Wednesday. Toncoin surged more than 9 per cent, while Tron jumped about 3 per cent. Among the losers, Solana, Polkadot and Dogecoin shed about a per cent each. Cardano was also down about half a per cent.
The global cryptocurrency market cap was trading slightly higher, rising to $1.03 trillion-mark, as it rose about one-third per cent in the last 24 hours. However, the total trading volumes dropped as much as 12 per cent to $32.09 billion.
Image: Crypto-chart-price
Tech View by Giottus Crypto Platform
Optimism (OP) is experiencing a short rally. The asset is showing signs of recovery including a breakout from its short-term descending channel. OP could hit its key 100-day moving average, around the $1.4mark. Its RSI reading is currently at 46.2 and has started moving upwards towards a neutral territory.
Image: Chart-OP
However, if OP is unable to break through the $1.5 barrier, the price may fall below current levels. The most recent low (about $1.2) serves as an early support level, with$1.12 providing the next line of defence.
Major Levels:
Support: $1.21, $1.12
Resistance: $1.4, $1.5
(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
