Proactive Investors - Cryptocurrencies have remained flat over the last 24 hours although traders may back away from riskier assets this week.
Bitcoin was down 1% to US$22,670, although over the weekend the largest digital coin by market cap peaked at US$23,220, a three-month high.
Ethereum, on the other hand, was up marginally, gaining 0.18% to US$1,631, although it reached its own three-month high on Saturday, hitting US$1,659.
However, according to Naeem Aslam, a market analyst at Avatrade, this week will show whether Bitcoin continues to “trade higher as cracks have started to show in the risk-on rally.”
“Bitcoin has a strong positive correlation with the risk-on factors, and it has been moving higher as the equity markets scored more gains,” Aslam said. “Traders may back away from supporting riskier assets this week, and the comments from the Fed officials have indicated that the Fed doesn't seem to be in a rush to end its ultra-hawkish monetary policy.”
He added: “In terms of the price level, traders are focused on two price levels. Firstly, the resistance of US$25,000. Followed by that is the resistance of US$30,000.
“Secondly, the support is at a US$20,000 price level. If we see the price breaking above their price points, only then are we likely to see another trend forming.”
In some of the altcoins, Dogecoin was up 4.46% to US$0.08947, Polygon was up 0.81% to US$0.9989 and Cardano was up 0.46% to US$0.3747.