Over the past few days, Bitcoin and Ethereum prices have seen jerky movements, perhaps due to the Chinese Lunar New Year, when Asian investors are on vacation. With current market conditions, many investors are wondering if BTC and ETH could get 5% advances ahead of the weekend.
In this article, we will explore the factors that could lead to such a scenario and give predictions as to whether it is likely to happen or not. We will also examine the recent performance of these cryptocurrencies and what the experts are saying about their future prospects.
The main winners and losers of the cryptocurrency market
Fantom (FTM), eCash (XEC) and Polygon (MATIC) were the top performers over the past 24 hours. The price of FTM increased by more than 13.50% at $0.46, while the price of XEC increased by nearly 7% at $0.000041. At the same time, MATIC gained just under 10% to trade at $1.09.
In the past 24 hours, Treshold (T) fell around 7.50%, at $0.055. However, it is still up nearly 150% in the last seven days. Optimism (OP) fell more than 10%at about $2.15, and Lido DAO (LDO) lost around 8.85%at $2.30.
Cryptocurrency Market Fundamentals: What You Need to Know Before Investing
US GDP figures beating expectations led to a brief rally in cryptocurrency prices. However, this recovery was short-lived because of a job market still tight and speculation that the Federal Reserve could keep interest rates high for a longer period.
Going forward, the release of personal consumption expenditure data today, along with a slew of other statistical releases this week, is expected to create a highly volatile market environment, potentially leading to further losses in Bitcoin. (BTC) and Ethereum (ETH).
Consumer Spending Soars: BTC and ETH Under Pressure
According to the US Department of Commerce, consumer spending increased in the fourth quarter of last yearleading to a better-than-expected annual growth rate of 2.9% in gross domestic product.
In the meantime, GDP price index fell to 3.5% and personal consumption expenditure growth slowed to 2.1% year-on-year from 2.3% in the prior quarter, also improving inflation data.
However, significant increases in Federal Reserve interest rates from a year earlier reduced demand and slowed growth towards the end of 2022, presenting tough decisions for US central bank policymakers.
Notably, the Federal Reserve’s overnight rate is expected to hit 4.45% by December, down from the 5.1% rate Fed officials had projected for the rest of the year in due to market expectations of lower rates. Futures contracts provide for a 94.7% probability of a 25 basis point hike next Wednesday.
Therefore, investors will closely watch the Federal Reserve’s next decision, which will have a considerable impact on the cryptocurrency market.
Ted Cruz pushes for Bitcoin payments to be accepted by Capitol vendors
On Wednesday, Senator Ted Cruz introduced a bill in the Senate that would allow cryptocurrency payments within the Capitolsignaling that Republicans remain interested in legislation governing digital assets.
The new directive applies to those responsible for managing the day-to-day operations of the House of Representatives and the Senate, and encourages them to work with people who will accept digital assets as payment for goods and services.
If successful, this could be good news for the entire cryptocurrency market.
Elon Musk’s flip-flop: Tesla has stopped accepting Bitcoin
You’re herethe manufacturer of electric vehicles, decided not to sell any additional Bitcoin (BTC) in the second half of 2022although it has already sold 75% of its holdings this quarter.
Since spring, Tesla no longer accepts BTC to buy equipment in its catalog as well as cars. On January 25, Tesla released its fourth quarter results, which showed that the company had neither bought nor sold any of its bitcoin holdings for the second consecutive quarter.
This is seen as an important factor that could help the cryptocurrency market regain its footing.
The price of bitcoin
Bitcoin is currently valued at $23,005, with a 24-hour trading volume of $26 billion. Over the past 24 hours, Bitcoin has been choppy, down just 0.2%. With a live market worth $435 billion, CoinMarketCap currently ranks it the top cryptocurrency.
Bitcoin is currently experiencing resistance at $23,250 and its immediate support stands at $22,500.
If the price of Bitcoin falls below $22,500, a market downtrend is likely to occur and could go up to around $21,500. If it continues to decline from there and reaches $20,450, it is possible that we will see an even more bearish trend.
The relative strength index and the moving average convergence divergence are both in the overbought zone. Nevertheless, a bullish engulfing candle has been seen recently, which could indicate that the uptrend of the market may continue.
On the upside, if the immediate resistance level of $23,250 is crossed, Bitcoin could potentially reach $23,900 and $25,150.
The price of Ethereum
Ethereum is currently trading at $1,580 and experienced a decrease of 1.50% in the past 24 hours with a total trading volume of $8.7 billion. It has live market capitalization of $193 billion.
The ETH/USD pair saw a sharp decline from the $1,600 level over the 4-hour timeframe. This decline was triggered by a violation of an uptrend channel and a subsequent close below this price level. The downtrend eventually led to a bottom below $1,525.
ETH could possibly encounter resistance at $1,600. If he is able to cross this level, its price could easily be raised to $1,675. Alternatively, there is a possibility of a downtrend from $1,525which could extend to $1,445 if the market struggles.
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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