Bitcoin and Ethereum are the two most traded cryptocurrencies on the market, with both having experienced a lack of volatility over the past few days despite everything. While investors and traders eagerly await the Federal Open Market Committee (FOMC) minutes due out tomorrowthe question on everyone’s mind is whether BTC and ETH are on the verge of a further rise.
Bitcoin (BTC), the largest cryptocurrency in the world, remains stable just below the $25,000 mark. Meanwhile, the second most popular cryptocurrency, Ethereum (ETH), remains just under $1,700 which it recently overtook for the first time since September 2022.
THE Bitcoin is up 14% in the last seven days, indicating a rapid growth trend. Other well-known cryptocurrencies, such as Dogecoin (DOGE), Solana (SOL), Litecoin (LTC) and Ripple (XRP), also saw marginal increases.
There total market capitalization of all cryptocurrencies was $1.130 billion this morning, which is an increase of 1.67% over a 24 hour period.
However, the reason for its rally could be linked to improving macroeconomic conditions and renewed investor optimism in the markets. Additionally, the Hong Kong Securities and Futures Commission (SFC) has recommended new laws for cryptocurrency trading platforms to increase investor safety. This is considered to be another important factor influencing Bitcoin values.
Rise of the US dollar at a standstill
The US dollarwhich was on an upward trend due to strong labor market statistics and persistent inflation, has lost some of its momentum as traders waited for economic data to determine whether pushing the dollar higher was still justifiable. Despite rising for three straight weeks, with a gain of around 1.7% in February, the US dollar index has now stabilized around 104, after hitting a high of 104.67 on Friday.
As a result, a bearish US dollar can play an important role in supporting BTC pricessince Bitcoin has a high inverse connection to the US Dollar Index (DXY).
Moving on, the market is now waiting for the release of the minutes of the last Fed meeting. However, traders are anticipating European and US industrial production statistics later on Tuesday, as well as the core price index on Friday, to help guide their next moves.
Hong Kong proposes regulation for crypto platforms
Cryptocurrency prices have risen further due to new licensing guidelines for crypto exchanges in Hong Kong, which aim to make the city a hub for digital currencies. Monday, thea Hong Kong Securities and Futures Commission (SFC) has issued regulations for virtual asset trading platforms and now invites the public to leave comments.
According to the announcement, all cryptocurrency trading platformsincluding those that currently exist, should begin to assess and upgrade their systems and procedures to comply with the new regime. They further added that those who do not intend to apply for a license should start making arrangements for a peaceful exit from the Hong Kong market. Stablecoin regulation will also begin in Hong Kong in June this year.
The price of bitcoin
Technical analysis shows that the price of Bitcoin has been fluctuating slowly in a narrow range of $23,700 and $25,200. If the BTC/USD pair is able to break above the $25,200 resistance levelshe could continue rising towards the $26,000 levelwhich is the next significant resistance level.
However, leading technical indicators including RSI and MACD show divergence. While the RSI is currently above 50 and in the buy zone, the MACD is forming histograms below 0 and in the sell zone. Investor indecision is often the result of this type of mismatch.
In the event that the price of Bitcoin drops below the current support level of $23,750, theThe 50% Fibonacci retracement mark would act as the next support level at $22,850.
Minutes from the next Federal Open Market Committee meeting are due out on Wednesday, so all eyes will be on that event in the coming week. The price movement of Bitcoin can be affected by this information.
The price of Ethereum
The ETH/USD pair saw positive momentum after established support near the $1,650 mark. Ethereum price has been fluctuating within a tight range over the past couple of hours, as evidenced by the formation of a symmetrical triangle on the 2-hour time frame, indicating market uncertainty.
Ethereum price could hit $1,720 if the cryptocurrency has a positive bounce above the $1,650 level. Further bullish gains are possible if prices move higher from the symmetric triangle pattern and the $1,720 mark.
To offset this decline, Ethereum has support around $1,650 and $1,625. Analysis of the RSI and MACD of ETH like that of BTC shows divergences. The $1,760 and $1,800 price levels should act as barriers on the downside or upside.
Alternatives to Bitcoin and Ethereum to follow
Cryptonews Reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.
Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
Find the best price to buy/sell cryptocurrency
