Bitcoin (BTC) and Ethereum (ETH), the two most popular cryptocurrencies in the world, have not been able to recover for the moment and are still barely trading at equilibrium below the $23,000 and $1,600 levels respectively.
Traders are reluctant to place firm offers before a critical week of economic development in the United States. This week will see the release of non-farm payrolls statistics and remarks from US Federal Reserve Chairman Jerome Powell, making this a pivotal moment for the market.
BTC struggled to break above the $22,800 resistance leveland if the downtrend succeeds in pushing the price below its current level, the next level of support would be at $21,480.
The second-largest cryptocurrency, Ethereum, also saw a lack of trading around the $1,500 mark, indicating a hesitation among buyers and sellers.
A market that remains very cautious
The global cryptocurrency market has been on a downward trend over the past few weeks, with prices falling across the board. The main reason for this drop is the bearish market sentiment, which had a negative impact on the price of Bitcoin.
However, this current market condition could also have an effect on the supply of BTC. As people lose faith in the market, they may choose to sell their Bitcoin holdings, thereby increasing supply and further lowering prices.
There is, however, a silver lining amid the current Bitcoin and Ethereum price decline. If investors see Silvergate’s suspension as a minor setback rather than a major negative event, the current downtrend may not last long.
It should be noted that Bitcoin and Ethereum have a large market capitalization and are closely interconnected. Therefore, any positive outcome for one cryptocurrency could have a favorable impact on the other.
The growing interest of major financial institutions in Bitcoin and Ethereum is also another factor that could contribute to their price appreciation.
Over the past few months, many large financial institutions have expressed interest in investing in Bitcoin or offering Bitcoin-related services to their clients. This increased institutional demand for Bitcoin and Ethereum could fuel the rise in their values.
Regulatory Tightening Undermines Bitcoin
THE intense government hardening against cryptocurrencies a led to lower BTC and ETH prices. While cryptocurrencies operate in a legal gray area, governments around the world are still trying to regulate them. Heavy government crackdown on cryptocurrencies is causing demand for Bitcoin and Ethereum to drop.
This can lead to growing concerns among investors and traders, as well as increased volatility and fear of legal consequences.
Governments and regulators can introduce policies that restrict or prohibit the use or trade of cryptocurrencies, potentially reducing demand for Bitcoin and Ethereum, causing their value to decline.
Additionally, investor sentiment can turn negative when selling their holdings due to a lack of confidence in the future prospects of cryptocurrencies, driven by regulatory measures.
In summary, investors should closely monitor any possible regulatory tightening of cryptocurrencies, as it could significantly affect the values of Bitcoin and Ethereum.
Falling US Dollar: Eyes on Federal Reserve Statement
On Tuesday, the US Dollar remained cautious ahead of Federal Reserve Chairman Jerome Powell’s speech. The US dollar indexwhich measures the greenback against the six major currencies, fell 0.077% to 104.170, after falling 0.26% overnight.
The index fell 0.6% for the current month, after rising 2.6% in February.
Investors are eagerly awaiting the February jobs data, which is expected to be released on Friday, but their primary focus is Federal Reserve Chairman Jerome Powell’s statement to Congress on Tuesday and Wednesday.
The Fed had raised interest rates by 25 basis points at its last two meetings after large increases the previous year. However, strong economic data in February fueled concerns that the central bank might start to take more significant action again.
In the meantime, the weak position of the US Dollar could help the cryptocurrency market regain some of its momentum.
The price of bitcoin
Currently, the price of Bitcoin stands at $22,444, completely stable over 24 hours and with a trading volume of $15.6 billion. The live market capitalization of BTC stands at $433 billion.
According to the technical analysis, the BTC/USD pair is currently in a consolidation phase, trading in a narrow range of $22,000 to $22,500.
A break of this forkup or down, could lead to a large price movement in the Bitcoin market.
In case the BTC/USD pair breaks above the $22,500 level, it could trigger a bullish trend, which could potentially driving Bitcoin price towards the $22,800 or $23,250 levels.
Conversely, if the support levels around $22,000 or $21,750 hold, it could lead to a rebound.
The price of Ethereum
The current price of Ethereum (ETH) is $1,572 with a 24-hour trading volume of $4.9 billion. Ethereum has seen an increase of almost 0.5% in the last day and its live market capitalization is $192 billion.
Technically, the ETH/USD pair is currently trading in a tight range between $1,550 and $1,580.
If the price of Ethereum falls below the $1,560 level, it may find new support at $1,500. Nonetheless, it should be noted that there is substantial resistance at the $1620 or $1680 levels, which may limit any further price declines.
Top 10 Alternatives to Bitcoin and Ethereum to Watch
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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