Author: Joshua Aldio, Business Associate Tokenomy
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The prices of major cryptocurrencies were mixed on Friday (18/3/2022) morning Indonesian time as investors digested the news of United States (US) central bank interest rate hike.
Based on data from CoinMarketCap as of 09:00 WIB, cryptocurrencies that were trading in the red zone included Bitcoin which weakened 1.42% to a price level of US$ 40,555.84/coin or equivalent to Rp. 579,948,512/koin (assuming an exchange rate of Rp. 14,300/US$).
XRP digital coin (token) also fell 0.39% to US$ 0.7902/coin (Rp 11,300/coin). Terra fell 2.76% to US$ 85.65/coin (Rp 1,224,795/coin). Solana fell 2.5% to US$ 86.49/coin (Rp 1,236,807/coin). Cardano fell 0.32% to US$ 0.8347/coin (Rp 11,936).
Meanwhile, for the cryptocurrencies traded in the green zone, Ethereum rose 0.6% to a level of US$ 2,785.02/coin or Rp. 39,825,786/coin, BNB increased 0.87% to US$ 387.75/coin (Rp. 5,544,825/coin), Avalanche jumped 6.72% to US$ 80.82/coin (Rp 1,155,726/coin), and two stablecoin tokens Tether and USD Coin remained in the green zone.
After briefly hitting the US$ 41,000 price level yesterday, Bitcoin this morning returned back to the US$ 40,000 price level.
The largest altcoin token, Ethereum, also remained around the US$ 2,700 level.
The rise in altcoins’ prices over the past few days suggests a greater risk appetite among crypto traders.
This happened amidst the struggling global stock market, although in the Asia-Pacific region this morning, sentiments tended to be mixed, after the Chinese government pledged its support for the Chinese stock market on Wednesday.
On the macro front, analysts expect limited gains for the US dollar, which could be a positive sentiment for Bitcoin in the short term.
“The US dollar has appreciated since Russia began its military aggression against Ukraine, which is not surprising given that the greenback has a track record of appreciating in response to geopolitical events,” MRB Partners, a global investment research firm, wrotei n a research report.
“However, this strengthening is generally followed by a consolidation phase,” added MRB Partners.
Investors in crypto tend to be less worried about the Fed’s benchmark interest rate hike, because they have been anticipating it for a long time and the rate hike is in line with their expectations.
The US central bank (Federal Reserve / The Fed) has raised interest rates by 25 basis points (bp) on Wednesday US time in line with market expectations.
The Fed also forecast aggressive plans for further rate hikes while cutting its economic growth forecast for this year.
“People are getting more comfortable with the fact that interest rates are finally going up. This has been talked about by [Fed] Chair (Jerome) Powell since early December,” Michael James, managing director of equity trading at Wedbush Securities, told Reuters.
Bitcoin Technical Analysis
As we can see on the H1 chart, Bitcoin’s price has been increasing. We foresee that Bitcoin’s price is forming a bullish flag pattern with a divergence from Stochastic Oscillator. This would be a buying signal for traders who would have a short term entry model.
Trading Call : Speculative Buy at $40,000, and short Take Profit at $42,000
Traders and investors can utilize the Dual Currency Deposit in Tokenomy to place pending orders and earn some yield while waiting for the order to be executed.
DCD Reference : BTC/USDT at $40,000
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