Bitcoin, the main cryptocurrency, has experienced a trend reversal this Tuesday morning going slightly from $30,500 to around $29,700. Despite a gain of more than 10% last week, Bitcoin’s bullish momentum appears to have come to an end or at least paused. Traders are cautious about any big offers as investors await decisions at the next Fed meeting in May.
According to the CME tool FedWatch, markets are pricing in a 91% chance that the Fed will raise interest rates by 25 basis points at its next meeting in May, with traders anticipating rate cuts towards the end of the year.
As a result, the announcement of the Fed meeting is likely to have a major influence on the cryptocurrency market, as it is considered a primary indicator.
Strong economic data in the United States could lead to higher interest rates, affecting the cryptocurrency market
The global cryptocurrency market has seen remarkable growth in recent months, surpassing an impressive $1.29 trillion. However, the market has seen a slight decline lately, with its value falling to $1.25 trillion.
However, the recent decline can be attributed to the release of strong economic data in the United States, which reinforced the belief that the Federal Reserve could raise interest rates in May.
According to data released Monday in the United States, confidence among family home builders climbed for a fourth consecutive month in April, while industrial activity in New York state rose for the first time in five months. . Those are indicators that underline the good health of the economy or reflect an optimistic vitality. This, in turn, fueled speculation that the Federal Reserve will raise interest rates in May, strong to know that the economy is not slowing down.
Fear & Greed Bitcoin Index at 16-Month High, Signaling Positive Market Sentiment
The recent rise in BTC prices is attributed to the report of Bitcoin Fear & Greed Indexshowing a record over 16 months and indicating an increase in market sentiment. This index aims to measure the state of optimism or pessimism of investors which often results in fear (Fear) and greed for gain (Greed). As a result, the price of Bitcoin has risen over 7% over the past 30 days, reaching a high of $31,000.
Although Bitcoin crossed the $30,000 mark last week for the first time since June 2022, it fell 1.5% in the past 24 hours, hitting $29,700. However, the higher greed index suggests that its recent growth, which has seen its price soar over 80% this year, may continue as investors are still hungry for profits and expressing no major fear.
It should be noted that investors and traders use this index to make informed decisions. Typically, an increase in the index indicates positive market sentiment towards Bitcoin, contributing to its current price explosion.
The price of bitcoin
The value of Bitcoin rose to $31,000 recently, but fell slightly to $29,700 today. Ethereum, on the other hand, has been performing exceptionally well, having surged more than 10% in the past week and reaching the impressive mark of $2,100.
The decline in Bitcoin price could be related to the bearish exit from the symmetric triangle pattern observed on the 4 hour schedule. The BTC/USD pair made a 50% Fibonacci retracement at $29,450 before bouncing back.
THE RSI and MACD indicators are both in oversold zone, indicating the possibility of an upside correction. As a result, it is advisable to keep an eye on the $29,450 level to take a buy position.
The price of Ethereum
The current price of Ethereum is just under $2,100with a 24-hour trading volume of $9.2 billion, gaining less than 0.30% in the last 24 hours. Ethereum, the second most popular cryptocurrency, is currently experiencing a strong uptrend as it broke above the $2,075 resistance level and is now heading towards $2,150.
If ETH manages to close above $2,150, this could trigger an uptrend with a potential high of $2,250 or $2,300.
On the other hand, if Ethereum fails to close above $2,160, its price may drop back to $2,075 or even $2,030. It is essential to watch the $2,160 level to make informed decisions on whether to consider buying or selling positions today.
Top 10 Alternatives to Bitcoin and Ethereum to Watch
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
