A Tale of Two Cryptos as BTC Battles Resistance at $23,750 and ETH Awaits Its Fate
Bitcoin and Ethereum failed to reverse their downward trend and remained under pressure. While BTC is hovering around the $23,500 level as investors opted for safer investment options amid growing macroeconomic uncertainty.
However, the sharp decline in Bitcoin’s value came after the release of a series of robust US data that indicated a strengthening US economy and reduced the need for government support in the form of low interest rates.
This raised concerns among investors and traders about inflation and the potential for interest rate hikes.
The global cryptocurrency market is currently experiencing a decline, with Bitcoin struggling to surpass the critical resistance level of $23,750, which could result in a price drop to $22,800. In the last 24 hours, Ethereum has also experienced a decline of 0, 99% in value.
Bearish crypto market and rising inflation concerns
This week, the global cryptocurrency market has seen a decline, falling from $1.11 trillion to $1.07 trillion at the start of Tuesday. Bitcoin (BTC), the oldest and most valuable cryptocurrency, has been trading around the $23,000 level.
Other popular cryptocurrencies, such as Dogecoin (DOGE), Litecoin (LTC), Ripple (XRP) and Solana (SOL), have also experienced minor losses.
This is because investors are wary of investing in riskier assets, as they are concerned about the growing macroeconomic problems that have been exacerbated by higher than expected inflation rates.
Bulls take control as poor economic statistics weigh on markets
Bitcoin’s recent downtrend may not be long-lasting, as the US Commerce Department announced on February 27 that orders for durable goods had fallen 4.5% in January from the previous month. This has increased pressure on the Federal Reserve to end its rate hike program earlier than expected.
On Monday, the US Census Bureau released data indicating that US durable goods orders fell by $13 billion, or 4.5%, to reach $272.3 billion in January, slightly below market expectations for a 4 %, after an increase of 4% in December.
These statistics suggest that the Federal Reserve may end its rate hike program sooner than expected.
British banking regulator proposes regulations for issuing cryptocurrencies
The Financial Services and Markets legislation is expected to allow the Bank of England’s Prudential Regulation Authority to support global economic growth. Vicky Saporta, managing director of the Prudential Policy Directorate at the Bank of England (BOE), announced in a speech on 27 February that the Prudential Regulatory Authority (PRA), which is the country’s banking regulator, plans to introduce regulations for the issuance and ownership of digital assets.
While the move by the Prudential Regulation Authority to propose rules for issuing and owning digital assets can be seen as positive news for the cryptocurrency industry, it is unlikely to have an immediate impact on cryptocurrency prices.
Upcoming economic events
Traders will follow the release of China’s February Purchasing Managers’ Index (PMI) on Wednesday. Despite expectations that the data will show an increase in business activity from last month, the country’s massive manufacturing sector is still expected to remain close to the contraction zone.
This development is important for the global economy as China is the world’s second largest economy and a significant contributor to international trade.
In addition, market attention is also on the upcoming US PMI data, as well as consumer sentiment and labor market indicators for January and Q4. Any indication of economic strength in the US could give the Fed more room to continue raising interest rates, which could be negative for cryptocurrencies.
Bitcoin price
Today’s Bitcoin price is $23,435 with a 24-hour trading volume of $22.2 billion. Bitcoin has fallen by 0.30% in the last 24 hours. With a market capitalization of $452 billion, CoinMarketCap currently ranks first. It has a maximum supply of 21,000,000 BTC coins and a circulating supply of 19,303,806 BTC coins.
The BTC/USD pair’s technical outlook remains relatively unchanged, as BTC remains consolidated below the $23,750 resistance level, while maintaining immediate support at $22,800. If the price falls below this level, Bitcoin could face support at $22,150.
However, since the BTC/USD pair is in the oversold zone, a rebound could occur, potentially breaking through the $23,750 resistance level and leading to a price increase to $24,250.
The BTC/USD pair’s immediate support level is at $22,800, and if it breaks below this level, it could potentially expose the price of BTC to the next support area at the $22,150 level.
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Ethereum price
As of now, Ethereum is priced at $1.628 with a 24-hour trading volume of $6.9 billion. In the last 24 hours, the price has decreased by 0.50%. According to CoinMarketCap, Ethereum holds the second position with a current market cap of $199.2 billion.
From a technical point of view, the ETH/USD pair is currently facing a short-term obstacle at the $1,665 level, and breaching this barrier could reveal further upward movement towards the $1,725 level. The RSI and MACD indicators have moved into the buy zone, indicating that the probability of a sustained uptrend is high.
On the downside, Ethereum’s immediate support is at the $1,577 mark. A break below this level has the potential to push the ETH price towards the $1,500 mark.
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Top 15 Cryptocurrencies to Watch in 2023
Investors in the cryptocurrency market have many options beyond Bitcoin (BTC) and Ethereum (ETH). The Cryptonews Industry Talk team has compiled a list of the top 15 altcoins to watch in 2023.
The list is regularly updated with new ICO projects and altcoins, so be sure 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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