Are BTC and ETH Poised for a Rise Ahead of FOMC Minutes Tomorrow?
Bitcoin and Ethereum are two of the most traded cryptocurrencies in the market, and both have experienced a lack of volatility in recent days. As investors and traders eagerly await the Federal Open Market Committee’s (FOMC) minutes scheduled for release tomorrow, the question is whether BTC and ETH are poised for a rally.
Bitcoin (BTC), the world’s largest cryptocurrency, has continued to rise and has gained some traction above the $25K mark. Meanwhile, the second most popular cryptocurrency, Ethereum (ETH), has crossed $1,700 for the first time since September 2022.
Bitcoin has risen 14 percent in the past seven days, indicating rapid growth. Other well-known cryptocurrencies, such as Dogecoin (DOGE), Solana (SOL), Litecoin (LTC) and Ripple (XRP), also saw marginal increases.
The total market capitalization of all cryptocurrencies was $1.13 trillion, representing an increase of 1.67 percent over a 24-hour period.
However, the reason for the rise may be linked to improved macroeconomic conditions and investors’ renewed market optimism. Furthermore, the Hong Kong Securities and Futures Commission (SFC) has recommended new laws for cryptocurrency trading platforms to increase investor safety. This was seen as another important factor affecting Bitcoin values.
The US Dollar’s Rally has stalled
The US dollar, which had been in an upward trend due to strong labor market statistics and persistent inflation, lost some of its momentum as traders waited for economic data to determine whether it was still prudent to push the greenback higher. Despite rising for three consecutive weeks, with a gain of around 1.7% in February, the US dollar index has now settled around 104, after hitting a six-week high of 104.67 on Friday.
Therefore, the bearish US dollar has played a significant role in supporting BTC prices, as Bitcoin has a high inverse relationship with the US Dollar Index (DXY).
Moving on, the market is now awaiting the release of the minutes of the Fed’s latest meeting. However, traders expect European and US manufacturing data later on Tuesday, as well as the core PCE price index on Friday, to help guide their next moves.
Hong Kong proposes regulations for crypto platforms
Cryptocurrency prices have received a further boost due to new licensing guidelines for crypto exchanges in Hong Kong, which aim to establish the city as a hub for digital currencies. On Monday, the Securities and Futures Commission (SFC) in Hong Kong issued regulations for virtual asset trading platforms and is now inviting public feedback.
According to the announcement, all cryptocurrency trading platforms, including those currently in existence, should begin assessing and upgrading their systems and procedures to comply with the new regime. They further added that those who do not intend to apply for a license must begin to facilitate a peaceful exit from the Hong Kong market. Stablecoin regulation will also begin in Hong Kong in June this year.
Bitcoin price
Technical analysis shows that Bitcoin’s price has fluctuated slowly within a tight range of $23,700 and $25,200. If the BTC/USD price is able to break above the $25,200 resistance level, it may continue to rise towards the $26,000 level, which is the next significant resistance level.
However, the leading technical indicators, including RSI and MACD, are showing divergence. While the RSI is currently above 50 and in the buy zone, the MACD forms histograms below 0 and in the sell zone. Investor indecision is often a result of this type of inequality.
In case the price of Bitcoin falls below the current support level of $23,750, the 50% Fibonacci retracement mark will act as the next support level of $22,850.
The minutes of the next meeting of the Federal Open Market Committee are due on Wednesday, so all eyes will be on that event in the week ahead. Bitcoin’s price movement can be affected by these minutes.
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Ethereum price
The ETH/USD pair has experienced a boost in positive momentum after establishing support near the $1,650 mark. Ethereum’s price has fluctuated within a narrow range over the past two hours, as evidenced by the formation of a symmetrical triangle pattern on the 2-hour time scale, indicating market uncertainty.
Ethereum’s price could hit $1,720 if the cryptocurrency has a positive pullback above the $1,650 level. Further gains for the bulls are possible if prices break out to the upside from the symmetrical triangle pattern and the $1720 mark.
To offset this decline, Ethereum has support around $1,650 and $1,625. Analyzing the price of Bitcoin is similar to analyzing the RSI and MACD, which show divergence. The price levels of $1,760 and $1,800 are expected to act as barriers in both cases.
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Bitcoin and Ethereum alternatives
In addition to Bitcoin (BTC) and Ethereum (ETH), there are several other altcoins in the cryptocurrency market that show significant potential. The CryptoNews Industry Talk team has conducted an analysis and created a list of the top 15 cryptocurrencies to watch in 2023.
This list is regularly updated with new altcoins and ICO projects, so it is recommended to check back often for the latest additions.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
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