Bitcoin and Ethereum prices have been on the rise recently, with BTC and ETH both rising 4% following the Federal Reserve’s rate hike. With more investors turning to cryptocurrencies as a safe haven asset, it is likely that the prices of Bitcoin and Ethereum will continue to increase in the near future.
This article will provide an overview of the current market conditions and discuss whether or not there is more upside for BTC & ETH prices in light of recent events.
Cryptocurrency: What’s The Fundamental Outlook Today?
Bitcoin, the world’s largest cryptocurrency, skyrocketed after the Federal Reserve raised interest rates by 25 basis points. Bitcoin has gained popularity due to various developments in the cryptocurrency sector, such as an increase in institutional investors and advancements in crypto legislation.
Early Thursday morning, Ethereum (ETH) surpassed the $1,600 mark which has generated optimism among the investment community. This positive sentiment is bolstered by Jerome Powell’s recent comments concerning US inflation dropping.
The global cryptocurrency market surged after the Federal Reserve announced an expected rate hike of 25 basis points, creating a favorable environment for the crypto sector. On Wednesday, the Federal Reserve raised interest rates by 0.25%, signaling the need to further tighten monetary policy. As part of its ongoing fight against inflation, the Fed promised “continuous hikes” in borrowing costs.
Hence, the most recent Federal Reserve decision was seen as one of the good things that boosted the cryptocurrency market and aided Bitcoin’s rise. Meanwhile, the rising number of institutional investors has made a big contribution to the market’s support for cryptocurrencies.
Across the ocean, the progress in the legislation surrounding cryptocurrencies was another key element that was seen to have positively impacted the crypto industry.
Crypto Miners Struggle
Retail investors began to show interest in Bitcoin as institutional interest in the Bitcoin futures market grew. According to Glassnode, there has been an increase in the number of addresses with more than 0.01 coins over the past month. This was seen as another key factor that boosted Bitcoin (BTC) prices.
Conversely, the miners weren’t having much fun. Last week, the money that Bitcoin miners made significantly decreased, and they were further adversely affected by the increasing cost of power.
This may put further pressure on miners to sell their shares, which could have a detrimental effect on the price of Bitcoin.
US Dollar Takes a Hit After Less Hawkish FOMC Meeting
The broad-based US dollar continued to fall after the Federal Reserve hiked interest rates by 25 basis points, as expected, and promised “continuous hikes” in borrowing costs as part of its ongoing fight against inflation.
Despite a healthy economic outlook, the Federal Reserve remains wary of inflation. To counter this, the US dollar has been weakening, which has in turn created an environment that has helped buoy Bitcoin prices.
Bitcoin Price
As of today, the market rate of Bitcoin is $23,900 and it has seen a 4% increase in its value over the last 24 hours. It also boasts an impressive trading volume of $29 billion and has achieved the highest ranking on CoinMarketCap, with a market cap of $ 460 billion.
On the 4-hour timeframe, Bitcoin is trading with a bullish bias and has an immediate resistance near the $24,250 level. If there is a bullish breakout of the $24,250 level, it has the potential to push BTC toward the next resistance area of $24,800.
Furthermore, if the BTC price breaks above the $24,800 mark, it could reach the $25,250 level. This is due to the less-than-hawkish Federal Open Market Committee and the Federal Reserve rate hike decision.
The leading technical indicators, such as the RSI and MACD, have entered the buying zone, and the 50-day simple moving average is also suggesting a buying trend.
On the downside, Bitcoin may gain immediate support near $23,550; however, a bearish breakout of this level could create more room for selling, down to $23,250.
Ethereum Price
Ethereum has seen a 5% increase in the last 24 hours, with its current price at $1,673. The 24-hour trading volume is estimated to be around $9.6 billion and according to CoinMarketCap, it currently ranks 2nd having a live market cap of $204 billion.
On the technical front, Ethereum has violated an ascending triangle pattern, which was providing resistance near the $1,660 level. If there is a bullish breakout above this level, it could lead to the ETH price increasing to $1,725 as an initial target.
On the four-hour timeframe, the ETH/USD pair has formed a “three white soldiers” candlestick pattern, signaling the possibility of a bullish trend continuation.
While support levels continue to hold around $1,660, Ethereum may experience a bearish correction until the $1,600 or $1,550 level.
Bitcoin Alternatives
CryptoNews Industry Talk has evaluated the top 15 cryptocurrencies for 2023. If you’re looking for a more promising investment opportunity, there are other alternatives to consider.
The number of cryptocurrencies and new ICOs (Initial Coin Offerings) keeps increasing on a weekly basis.
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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