The crypto market is showing early signs of recovery as the major cryptocurrencies have rebounded from critical support levels. Bitcoin (BTC) and Ethereum (ETH) have bounced near the $20,000 and $1000 levels, respectively, ahead of the Fed meeting.
In fact, the U.S. stock futures have also risen 1% and government bonds steadied as investors await the Fed interest rate decision today. The Nasdaq-100 index futures, which is mostly correlated with Bitcoin price, rose more than 1%.
Crypto Market Shows Early Signs of Recovery
In the last few hours, the crypto market has reversed its trend with top cryptocurrencies rebounding from critical support levels. The Bitcoin (BTC) price is now trading at $21,332, up 5% in a few hours. Whereas, Ethereum (ETH) has jumped nearly 10%, with the current price trading at $1,119. Both top cryptocurrencies have rebounded from their critical support levels at $20,000 and $1000, respectively.
Other top cryptocurrencies including BNB, XRP, Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX) are also trading higher. In fact, Tron (TRX) is leading the rally with an upside move of more than 5% in the last hour. It should be due to the transfer of TRX tokens worth millions from Binance by Tron DAO Reserve.
Recovery was seen in the DeFi front too, Compound, Maker, Aave, UniSwap, and Chainlink have jumped nearly 5%. This is the first positive news for the DeFi sector as the total value locked in DeFi continues to fall.
According to crypto analyst Rekt Capital, the Bitcoin price tends to bottomed-out soon after constant selling and a trend reversal could be seen over time. He urged users to watch for high sell-side volume bars, a signal for bottom levels.
Investors Await the Fed’s Interest Rate Hike Decision
While the crypto market is showing early signs of recovery, the investors should wait for the Fed’s decision on the interest rate hike. Despite some recovery in Bitcoin and Ethereum, the prices are still down 5% and 6% down in the last 24 hours. Whales are buying BTC at the dip, but investors must wait for clear confirmation of a bullish trend.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.