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Bitcoin attempts recovery after rate hike scare. Should you buy it?

Bitcoin attempts recovery after rate hike scare. Should you buy it?

Bitcoin recovered 1.58% on Thursday after the rate-hike drop Bitcoin remains vulnerable as long…

The post Bitcoin attempts recovery after rate hike scare. Should you buy it? appeared first on CoinJournal.

Bitcoin attempts recovery after rate hike scare. Should you buy it?
  • Bitcoin recovered 1.58% on Thursday after the rate-hike drop

  • Bitcoin remains vulnerable as long as macro-issues do not abate

  • $19,250 is a level to watch on Bitcoin as it recovers

Bitcoin BTC/USD is one of the highly watched cryptocurrencies during interest rate decisions. That’s because the cryptocurrency has exhibited correlations with equities. Thus, when interest decisions come up, equities and Bitcoin become focal points. 

On Wednesday, the Federal Reserve announced a 75-basis point interest rate hike. The market had anticipated a similar hike in magnitude. Bitcoin fell below $19,000 immediately after the rate decision but recovered quickly. As of press time, the cryptocurrency was trading at $19,166 after adding more than 1.50% in 24 hours. The swift recovery indicates that markets had priced for a 75 basis point hike. Does that suggest Bitcoin will continue rising?

Looking ahead, the US central bank will hike rates further to end the year at around 4.4%. Fed Chair Jerome Powell did not rule out the possibility of a recession. The gloomy macro-outlook makes risky assets, including Bitcoin, unattractive. 

Bitcoin is recovering but faces resistance at $19,250

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Source – TradingView

Applying the MACD indicator, Bitcoin’s momentum weakened after the Fed rate hike. The MACD line entered deeper into the bear zone as the price lost an important $19,250 support. At the current level, BTC trades at or slightly below the support, having hit the lowest since June. The level is also below its average for the past 50 days.

From the technical outlook, BTC has to successfully reclaim the $19,250 level to consider a potential upside. The cryptocurrency is not a recommended buy at the moment, especially in the short term.

Summary

Bitcoin could slip further if it fails to reclaim the $19,250 level. The macro factors and technical outlook sound bearish despite the latest recoveries. A recovery above the $19,250 invalidates a bearish view.

The post Bitcoin attempts recovery after rate hike scare. Should you buy it? appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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Altcoins

Telco giant Deutsche Telekom launches Ethereum validator

Deutsche Telekom will run an Ethereum validator node via its subsidiary T-Systems Multimedia Solutions…

The post Telco giant Deutsche Telekom launches Ethereum validator appeared first on CoinJournal.

  • Deutsche Telekom will run an Ethereum validator node via its subsidiary T-Systems Multimedia Solutions and has also partnered liquid staking pools provider StakeWise.

German telecom giant Deutsche Telekom has announced support for the Ethereum network, revealing plans to run a validator node on the world’s largest proof-of-stake (PoS) blockchain.

An announcement from the telecommunications giant on Thursday stated that the company move is part of its wider objective of expanding its activities across the blockchain technology and crypto ecosystem.

Deutsche Telekom joins Ethereum staking

According to Deutsche Telekom, its validation infrastructure will be handled by its subsidiary, T-Systems Multimedia Solutions (T-Systems MMS). T-Systems MMS will thus operate a validator node on Ethereum, taking part in the network’s staking mechanism.

Deutsche Telekom also announced that its subsidiary would be partnering liquid staking pools provider Stake Wise, this marking the telco’s entry into liquid staking. 

The StakeWise app allows ETH holders to participate in network validation without having to operate a validator node themselves. This in turn lowers the entry barrier for anyone looking to invest in the cryptocurrency.

After collaborating with Flow, Celo and Polkadot, we are now taking the next decisive step in the blockchain world and are doing pioneering work here with Ethereum. As a node operator, our entry into liquid staking and the close collaboration with a DAO is a novelty for Deutsche Telekom,” said Dirk Röder, Head of Blockchain Solutions Center at T-Systems MMS.

The German telco behemoth’s move comes a few weeks after Ethereum successfully transitioned from the proof-of-work mechanism used on the Bitcoin network.

The Merge, as the Ethereum software upgrade that ushered in the PoS mechanism was called, is set to see energy consumption for Ethereum fall by 99.95% – making the blockchain a more eco-friendly network.

The post Telco giant Deutsche Telekom launches Ethereum validator appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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