BTC Revisits $30,000 – Can Both Cryptocurrencies Bounce Back?
Bitcoin and Ethereum are two major cryptocurrencies that have gained significant popularity since the beginning of this year. Ethereum (ETH), which is the second most popular cryptocurrency, recently passed the $2000 milestone for the first time since last May.
Meanwhile, Bitcoin, the world’s largest cryptocurrency, started the new week on a positive note, staying constantly within the $30,000 level. Bitcoin hit $31,005 last week, its highest price since June 2022.
However, the rise in Ethereum price was mainly driven by the success of the Shanghai upgrade. It is worth recalling that the Shapella upgrade was implemented on April 12, and there were concerns that the update could cause the price of Ether to fall.
Although it seems that most validators who own Ether are just withdrawing their rewards instead of selling Ether. However, it seems that the majority of validators holding Ether are only withdrawing incentives rather than selling Ether. This suggests that the Shapella update had no negative impact on Ether’s prices.
Crypto Prices Stay Steady Despite Hawkish Fed Comments
Despite hawkish comments from Federal Reserve officials regarding the path for interest rate hikes, the global cryptocurrency market has flashed green and held steady in early trading in Asia on Monday.
At the time of writing, the global crypto market valuation was $1.27 trillion, up 0.19 percent in 24 hours. However, the Fed’s latest comments overshadowed its earlier speculation that it was on the verge of cutting interest rates, causing a jump in Bitcoin prices. In particular, the potential for interest rate cuts was driven by low inflation and indicators of a sluggish labor market.
Although this appears to be a temporary trend, as hawkish statements from Federal Reserve officials led to renewed concerns about rising interest rates, allowing the dollar to continue its retreat from one-year lows.
BTC has been supported by safe demand over the past month, partly due to the collapse of several US banks. Although fears of a major crisis have subsided, expectations of a US recession this year have fueled BTC.
Therefore, BTC had been negatively affected by rising US interest rates throughout 2022, but this year saw a sharp recovery as investors anticipated an end to future rate hikes. Despite expectations of a pause in June, Fed Fund futures rates indicate that markets are still gearing up for another rally in May. This was seen as one of the key factors that could limit further gains in the BTC price.
Bitcoin and Ether’s resilience in turbulent banking sector
According to ARK Invest CEO Cathie Wood, Bitcoin and Ether have shown resilience in the recent turbulence in the financial sector, outperforming other assets and operating similarly to gold. She believes that the two cryptocurrencies have become “flight to safety” assets during macroeconomic uncertainty, indicating wider adoption and acceptance.
Wood expects that cryptocurrency will eventually become an electoral issue once it is more widely accepted.
On the flip side, Bridgewater Associates founder Ray Dalio remains skeptical, arguing that Bitcoin is too volatile to be used as a currency and that central banks would not accept it. This could put some negative energy on BTC prices.
Bitcoin price
The current Bitcoin price is $29,980, and the 24-hour trading volume is $14.9 billion. Bitcoin has fallen by almost 1% in the last 24 hours. On Monday, BTC/USD is trading with a bearish bias and is likely to find immediate support near the $29,750 level.
During the 4-hour time frame, the BTC/USD pair has formed a symmetrical triangle pattern that is likely to find support near the $29,790 level. A bearish breakout of this level has the potential to further push the Bitcoin price down towards $29,190.
The RSI and MACD indicators are both in the sell zone, indicating the possibility of a bearish correction. Therefore, it is advisable to wait for BTC to retest the $29,750 level before taking any buy positions.
If the BTC/USD pair breaks above the $30,250 level, it is likely that the $30,500 or $31,000 levels will act as resistance.
Buy BTC now
Ethereum price
The current price of Ethereum is $2.098, with a 24-hour trading volume of $8.9 billion. Ethereum has risen 0.10% in the last few hours.
Ethereum, the second most popular cryptocurrency, is currently experiencing a significant bullish trend after surpassing the $2,075 resistance level. The cryptocurrency is now moving towards the $2150 mark.
If ETH manages to close above the $2150 level, it could trigger an uptrend that could reach as high as $2250 or $2300.
However, if Ethereum does not close above the $2,160 level, the price may fall to $2,075 or even $2,030. It is crucial to pay close attention to the $2,160 level to determine whether to consider buying or selling today.
Buy ETH now
Top 15 Cryptocurrencies to Watch in 2023
Stay updated on the latest ICO projects and altcoins by consulting the expertly curated list of the 15 most promising cryptocurrencies to watch in 2023, as recommended by industry specialists at Industry Talk and Cryptonews.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
Find the best price to buy/sell cryptocurrency
