The cryptocurrency market has seen many ups and downs lately, but things are looking positive now. This trend can be attributed to the improving global economy and lower inflation rates.
Bitcoin, one of the most popular cryptocurrencies, has recently gained popularity, surpassing the $29,000 mark for the first time since June 2021.
This year, BTCthe largest cryptocurrency in the world, experienced an increase of approximately 70%.
Meanwhile, Ethereum, the world’s second-largest cryptocurrency, hit levels of $1,858, its highest level since August 2022. Ethereum is up over 9.8% this month and almost 50% this year.
Update to Elon Musk’s Twitter profile sends Dogecoin skyrocketing
Dogecoin (DOGE) saw an increase in value againthanks to an update to Elon Musk’s Twitter profile. The billionaire changed his profile picture to Shiba Inu, the dog breed that inspired the creation of meme-based cryptocurrency.
Consequently, DOGE’s price soared 35%causing a stir in the crypto community.
This isn’t the first time Musk has influenced the value of DOGE through his social media activity, with his tweets and comments on the digital asset often causing significant price movements.
Bitcoin Sees Positive Growth Amid Banking Crisis and Falling Interest Rates
The cryptocurrency market has been doing well recently, and a lot of people are bullish about it. Bitcoin, the most valuable cryptocurrency, is up around 70% this year and is currently valued at over $28,000.
It saw an increase of around 20% in March, the largest increase since January 2023. Currently, the global market cap of the crypto market stands at $1.17 trillionin up 1.09% in the last 24 hours.
However, the current surge in the cryptocurrency market could be attributed to the ongoing banking crisis, which has led the Federal Reserve to ease rate hikes.
When interest rates are high, investors tend to avoid risky assets like cryptocurrencies. However, with falling interest rates, more and more people are considering investing in bitcoin.
In general, the investors tend to turn to alternatives such as cryptocurrencies in times of financial uncertainty or instability in the traditional banking sector to ensure their financial security and stability.
This offers people an alternative to the traditional banking system to maintain their financial independence.
Shanghai Ethereum Upgrade
Ethereum goes one new mechanism proof of stake, which will make the network more secure, faster and able to process more transactions. The upgrade is called the Shanghai Upgrade and it will change the way Ethereum verifies transactions using a lot of electricity to make sure how much Ethereum users are holding.
Thus, it will be better for the environment and will make it easier for individuals to use Ethereum. As a result, this will help ETH gain traction.
Bitcoin investors are cautious and watch economic indicators
This week, investors are giving a special attention to US economic publications, with data on non-agricultural employment being the main focus. Traders are looking for any signs of labor market weakness that could affect Federal Reserve policy.
This data encourages traders to avoid aggressive bids. Meanwhile, inflation, financial instability, and regulatory changes could all influence the Bitcoin market and produce significant price swings.
The price of bitcoin
The price of Bitcoin is experiencing a downward correction compared to the $28,800 zone. If there is a definite move below the $27,500 support, BTC could see increased bearish momentum. The cryptocurrency managed to break above the $28,500 resistance level, but struggled to accelerate towards the $28,800 and $29,000 levels.
There immediate resistance is seen around the 27,820 level $, near the 23.6% Fib retracement level of the downward move from the $28,595 high to $27,578 low. There next key resistance is around the $28,100 area, close to the level of 50% Fib retracement of the downward move from the $28,595 high to $27,578 low.
If Bitcoin’s price cannot break above the $28,100 resistance, it could trigger another decline. Immediate support on the downside is then around the $27,600 area. The next major support is near the $27,500 area. If the price breaks below the $27,500 support, it could trigger a further decline.
The price of Ethereum
Ethereum price remained robust above the $1,750 support zone. ETH rose and attempted to clear the $1,840 resistance zone, but unlike Bitcoin, it failed to clear above $1,840.
The price reached $1,828 before undergoing a slight downward correction. While it fell below the $1,800 level, the price remained above the $1,750 support zone. A low was established near $1,762 and the price has now climbed back up to $1810.
If Ethereum fails to break above the $1,825 resistance, it could trigger a downside correction. The first downside support is near the $1,785 level and the price trendline.
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.
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