Bitcoin (BTC) and Ethereum (ETH), two of the most popular cryptocurrencies in the world, have been unable to halt their losses and are still trading in the red below the $23,000 and $1,600 marks, respectively.
Traders are hesitant to place any strong bids ahead of a critical week of economic developments in the United States. This week will see the release of nonfarm payroll statistics and remarks by US Federal Reserve Chair Jerome Powell, making it a crucial moment for the market.
BTC has faced difficulties in rising above the $22,800 level, and if the bears succeed in pushing the price below its current level, the next support level would be $21,480.
The second-largest cryptocurrency, Ethereum, has also seen a lack of trading activity around the $1,500 mark, indicating hesitation among buyers and sellers.
Risk-Off Market Sentiment
The global cryptocurrency market has been in a downward trend for the past few weeks, with prices falling across the board. The main reason for this decline is the bearish market sentiment, which has 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 confidence in the market, they may choose to sell their Bitcoin holdings, increasing the supply and driving prices down further.
There is a glimmer of hope amidst the current dip in the prices of Bitcoin and Ether. If investors consider the Silvergate suspension as a minor setback rather than a major negative event, the current bearish trend may not last long.
It’s worth noting that Bitcoin and Ether have a significant market capitalization and are closely interconnected. Hence, any positive outcome for one cryptocurrency could have a favorable impact on the other.
The growing interest of large financial institutions in Bitcoin and Ether is one more factor that could be contributing to their price appreciation.
In the past few months, many major financial institutions have expressed interest in investing in Bitcoin or offering Bitcoin-related services to their customers. This increased institutional demand for Bitcoin and Ether could fuel the rise in their values.
Regulatory Crackdown Undermines BTC
The intense government crackdown on cryptocurrencies has led to a decline in the prices of bitcoin and ether. As cryptocurrencies operate in a legal grey area, governments worldwide are still striving to regulate them. The strong governmental crackdown on cryptocurrencies is causing a decrease in demand for Bitcoin and Ether.
This may lead to growing concerns among investors and traders, as well as increased volatility and fear of legal consequences.
Governments and regulatory agencies may introduce policies that restrict or prohibit the usage or trading of cryptocurrencies, which could lower demand for Bitcoin and Ether, leading to a decrease in their values.
Moreover, investor sentiment may turn negative when they sell their holdings due to a lack of confidence in the future prospects of cryptocurrencies, driven by regulatory actions. This could result in a drop in cryptocurrency prices.
In summary, investors should closely monitor any potential regulatory crackdowns on cryptocurrencies as it could significantly affect the values of Bitcoin and Ether.
Bearish US Dollar – Eyes On Feds Testimony
On Tuesday, the US dollar remained cautious in anticipation of Federal Reserve Chair Jerome Powell’s testimony. The US dollar index, which measures the greenback against six major currencies, fell 0.077% to 104.170, following a 0.26% decline overnight.
The index has decreased by 0.6% for the month, after rising by 2.6% in February.
Investors are looking forward to the February employment data, set to be released on Friday, but their primary focus is on Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday.
The Fed had raised interest rates by 25 basis points at its recent two meetings after significant increases in the previous year. However, strong economic data in February has fueled concerns that the central bank may resume making larger moves.
In the meantime, the cautious stance of the US dollar may assist the crypto market in regaining some of its momentum.
As of now, Bitcoin‘s live price stands at $22,465, with a 24-hour trading volume of $15.6 billion. Over the last 24 hours, Bitcoin has seen an increase of 0.37%. With a live market cap of $433 billion, Bitcoin holds the #1 position on CoinMarketCap’s ranking.
It has a circulating supply of 19,310,450 BTC coins and a maximum supply of 21,000,000 BTC coins.
According to technical analysis, the BTC/USD pair is currently in a consolidation phase, trading within a narrow range of $22,000 to $22,500.
A breakout from this range, either to the upside or downside, could lead to significant price movement in the Bitcoin market.
Bitcoin Price Chart – Source: Tradingview
In case the BTC/USD pair surpasses the $22,500 level, it may trigger a bullish breakout, which could potentially drive the Bitcoin price toward the $22,800 or $23,250 levels.
Conversely, if the support levels around $22,000 or $21,750 are maintained, it might lead to a rebound.
The current price of Ethereum (ETH) is $1,573.86 USD with a 24-hour trading volume of $4.9 billion. Ethereum has seen a surge of nearly 1% in the last 24 hours. Ethereum is currently ranked #2 on CoinMarketCap with a live market cap of $192 billion.
Looking at the technical side, the ETH/USD pair is presently trading in a tight range between $1,550 and $1,580 levels.
Ethereum Price Chart – Source: Tradingview
If Ethereum’s price drops below the $1,560 level, it might find support at the $1,500 mark. Nonetheless, it’s worth noting that there is substantial resistance at the $1,620 or $1,680 levels, which could restrict any further price drops.
Top 15 Cryptocurrencies to Watch in 2023
You can check out Cryptonews’ Industry Talk team’s carefully curated list of the top 15 altcoins to watch in 2023. This list is regularly updated with new ICO projects and altcoins, so make sure to visit it frequently to stay up to date with the latest developments.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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