Even if Bitcoin (Crypto: BTC) and Ethereum (CRYPTO: ETH) Significant price declines have occurred over the past 24 hours, and a new report shows that both cryptocurrencies have fallen below key support levels, potentially signaling a change in market sentiment. there is.
According to 10x Research, Bitcoin has fallen below a key support level at $68,330, raising caution among traders and market watchers.
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This economic downturn comes amid strong growth and inflation data and could impact interest rate cut expectations, and cryptocurrencies may react more quickly to these macroeconomic signals than other asset classes. .
This situation is also reflected in Ethereum, which broke above the support range of $3,460 to $3,500.
This breach jeopardizes the bottoming pattern that Ethereum had previously formed and puts Ethereum on track to potentially re-attempt the $3,100 level unless there is a quick recovery.
The crypto community is also closely monitoring the potential impact of the Securities and Exchange Commission's decision on the Ethereum ETF, with prediction markets currently skeptical about May 2024 approval.
Adding to Ethereum's challenges are weakening fundamentals, with current returns reflecting levels seen when Ethereum was around $1,500.
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The Total Value Lock (TVL) within the platform suggests that the price of Ether could be more precisely around $2,500, indicating that it may be overvalued at recent price levels. .
This market turmoil comes at a time when cryptocurrency trading volumes are declining, especially in markets like South Korea, which is known for its high altcoin trading activity.
The decline in ETH gas fees further highlights the slowdown in network activity following the Dencun upgrade.
The broader macroeconomic environment could also play a pivotal role in the future direction of crypto prices, as the Fed's monetary policy outlook shifts to a less dovish direction than previously expected.
Financial conditions could pose further challenges for the crypto market as interest rate cuts may be smaller than expected.
As the digital asset community navigates these uncertain waters, Benzinga's Future of Digital Assets conference on November 19 will no doubt feature an in-depth discussion of these market dynamics.
Read next: Bitcoin could reach $150,000, says Mark Yusko, but not everyone agrees that Bitcoin is a 'better form of gold'
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