Crypto Price Today: Bitcoin tops $29,000; Ethereum regains $1,850; Polygon rises 4%

Bitcoin and other top crypto tokens were trading higher on Wednesday after Fitch's action. The global rating agency downgraded the US long-term ratings to AA+ from AAA. This downgrade comes at a time when companies are reporting relatively positive earnings.

Bitcoin was back in action on Wednesday as the largest crypto token gained as much as 3 per cent to regain the 29,000-mark. However, its largest peer, Ethereum, was trading higher as it gained more than 2 per cent and it climbed above the $1,850-levels. Altcoins were trading mostly up.

Bitcoin has surged above $29,000 in the past 24 hours . This rise could be attributed to MicroStrategy's decision to sell $750 million in stocks and utilize the funds to acquire more bitcoin. Another potential factor could be the recent downgrade of the US dollar by Fitch, indicating concerns about debt and fiscal deterioration, said Edul Patel, co-founder and CEO at Mudrex.

"Interestingly, this situation stands in stark contrast to the reaction seen in 2012 when companies reacted nervously to S&P's downgrade of US debt. Investors are now eagerly anticipating the Litecoin hardening event. Meanwhile, Ethereum has been trading within a range of $1,800 to $1,900 for the past week and is currently trading around $1,867," he said.

Barring the US dollar pegged Tether, all top crypto tokens were trading higher on Wednesday. Polygon surged about 4 per cent while Litecoin and BNB gained 3 per cent each. Cardano, XRP, Dogecoil and Polkadot were trading 2 per cent up each during the early day.

The global cryptocurrency market cap was trading significantly higher, rising up to $1.19 trillion-mark as it jumped more than 2 per cent in the last 24 hours. However, the total trading volumes surged about 32 per cent to $39.93 billion.


Image: Crypto-chart-price

Tech View by Giottus Crypto Platform
Bitcoin (BTC) has reversed its bearish momentum after hitting a low of $28,500 overnight. It is currently trading near $30,000 which is an important resistance level to flip for bullish price action. BTC dominance has hit 50% again indicating that Bitcoin will lead the market in terms of volatility and movement in the near term.

Chart-BTC

BTC is currently consolidating in the $28,500 - $31,500 range which will intersect a long-term support line at the bottom mid-month. Price is likely to revisit these lows to test as support. Its14-day RSI (at 46) indicates a neutral sentiment. If BTC breaches $30,400 after testing support, momentum will likely lead the asset to its $31,500 resistance.
Major Levels:
Support: $28,800, $28,200
Resistance: $30,400, $31,500


(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.)