Bitcoin (BTC) and Ethereum (ETH) both manage to hold steady at around $23,450 and $1,640 respectivelydropping just 1.5% over 24 hours after yesterday’s sharp rise. Indeed, BTC had hit an all-time high of over $24,000 following the Federal Reserve’s decision to raise interest rates by 25 basis points.
The cryptocurrency market has been heavily affected by recent US Federal Reserve policy. After the Fed announced it would cut interest rate hikes to 25 basis points, Bitcoin and other digital assets saw an increase in value.
Thursday morning, BTC prices hit a 6-month all-time high by briefly crossing the $24,000 threshold. Following this trend, Ethereum has seen a significant rise and is currently trading at $1,640.
Nevertheless, traders are hesitant to place orders because upcoming Non-Farm Payrolls (NFP) statistics, due today, will likely influence Bitcoin price. These numbers are crucial, as they will guide the Fed’s future decisions.
Moreover, the strong employment growth indicates that the Fed will maintain its accommodative attitude in the coming sessions.
Big Day for Bitcoin: US Non-Farm Payrolls Numbers in January
THE January US non-farm payrolls report due today and it could be a big day for Bitcoin. This report provides insight into the health of the US economy and could impact the price of Bitcoin. The report is expected to show that the US economy added fewer jobs in January, which would be a positive sign for bitcoin investors.
Moreover, other economic indicators such as those on employment in services will also be released today and could influence Bitcoin prices.
Investors should pay close attention to this data in order to make informed decisions regarding their cryptocurrency investments.
TD Securities analysts predict an increase of 220,000 non-farm jobs in the United States and a estimated increase in the unemployment rate to 3.6%.
According to experts, the average hourly wage increased at 4.9% per year, while remaining unchanged at 0.3% on a monthly basis. This is a 4.6% increase over the previous version.
As the demand for labor exceeds the supply, job seekers have more bargaining power. This could result in higher price indiceswhich could offset expectations of a slowdown in the Federal Reserve’s tightening policy.
The best insurance is Bitcoin, says Cathie Wood
According to Cathie Wood, CEO of ARK Invest, Bitcoin is a major asset to protect your wealth and provide insurance to those who are financially disadvantaged around the world. This view likely drove the crypto price higher.
Avid cryptocurrency supporter Cathie Wood is confident that Bitcoin will hit the $1 million mark. She believes that digital currency provides equal opportunities for the wealthy and those with more limited financial resources to secure their wealth.
The weaker US dollar and a dovish Fed stance
The US dollar failed to stem its decline and fell even further. The dollar index fell 1% to 101.08 points after the Fed’s decision on Wednesdayhitting its lowest level since April 2022. The dollar fell to a nine-month low against a basket of currencies on Thursday, despite the Federal Reserve reaffirming its commitment to keep interest rates rising.
The central bank raised interest rates by 25 basis points to reflect recent developments in the fight against inflation. However, Fed Chairman Jerome Powell noted that theThe country’s inflation rate remained high and expressed uncertainty about how many rate hikes the bank would need to make to ease price pressures
The price of bitcoin
Bitcoin (BTC) is currently priced at $23,450 with a 24-hour trading volume of $29 billion. It ranks #1 on CoinMarketCap and has a market capitalization of over $452 billion. There are 19.28 million BTC coins in circulation and a maximum supply of 21 million coins.
On the technical side, Bitcoin is heading for a $23,300 immediate support area. If this level is broken, further selling could bring the price down to $23,000where a rising trendline may provide price support.
The RSI and MACD indicators are signaling a selling trend, so additional selling pressure could push the price of BTC towards the next support zone of $22,750.
Since the 50-day moving average still suggests a buying trend above $23,300, we could see a bullish correction of the BTC/USD pair after today’s slight decline. On the upside, a breach of the $23,950 level could drive the price of BTC towards $24,500.
The price of Ethereum
The current trading price of Ethereum is $1,640 and 24-hour volume is $9.1 billion. The crypto has seen a decline of 1.5% in the past 24 hours and is currently holding a market capitalization of $200 billion.
On the technical side, Ethereum failed to break above the major resistance level of $1,710 and fell back to trade at around $1,640, likely due to profits taken by investors. Ethereum was in the overbought zone and has already made a 50% Fibonacci retracement at the $1,635 level.
For now, do not stay above this level could bring down the prices ofETH at $1,615the 61.8% Fibonacci retracement level.
The RSI and MACD indicators are currently at levels of 54 and 0.90 respectively, suggesting thatEthereum is no longer in an overbought statewhich could lead to a uptrend. Moreover, the 50-day EMA also indicates a downward trend. potential rise in ETH price above the $1,620 mark.
Ethereum’s resistance levels currently sit at $1,650 and $1,680. If these thresholds are exceeded, Ethereum could easily hit $1,720.
Alternative cryptocurrencies 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.
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