Bitcoin and Ethereum, the top two cryptocurrencies, have been trading within a narrow range over the weekend, causing concern among traders. As we head into the new week, the question on everyone’s mind is whether BTC and ETH will break free from the weekend blues and see a price breakout. In this update, we’ll take a closer look at the current state of Bitcoin and Ethereum, analyze their recent price movements, and provide predictions on whether we can expect to see a breakout in the near future.
Bitcoin is currently priced at $28,565.21, with a 24-hour trading volume of $18,291,181,018. Bitcoin is still up 1.48% in the last 24 hours. Conversely, Ethereum is priced at $1,824, with a 24-hour trading volume of $8.7 billion. It has gained nearly 1.50% in the past few hours. Both cryptocurrencies gained significant traction due to renewed interest in high-risk assets and hopes of the Federal Reserve ending its rate-hiking cycle.
However, regulatory developments have hampered Bitcoin’s growth as regulatory bodies crack down on cryptocurrencies and exchanges. Recently, the Commodities Futures Trading Commission sued Binance, the world’s largest crypto exchange, and its CEO Changpeng “CZ” Zhao for violating trading and derivatives laws.
The United States is about to sell over 41,000 Bitcoin seized during the Silk Road case against Ross Ulbricht. This news may spark investor interest, but its impact on the price of Bitcoin remains uncertain.
US inflation figures released by the Department of Commerce showed that core PCE climbed by 4.6% yearly, which is lower than expected and the previous month’s levels. The University of Michigan’s Consumer Sentiment Index for March was also lower than projected, with inflation forecasts falling over the one-year and five-year periods. These developments imply that the Fed will maintain its tightening efforts, which may influence the bitcoin price.
On Saturday, the BTC/USD pair maintained a narrow window between $27,600 to $28,900. It seems that investors are still searching for a solid fundamental reason to break out of this particular trading range. A breakout above the $28,900 triple-top pattern can push BTC toward its next immediate resistance level of $29,600. On the downside, BTC’s immediate support prevails at the $27,600 mark.
Similarly, Ethereum has been facing difficulty in surpassing the resistance level of $1,840 and has been persistently trading close to the support level of $1,700. In the event that the ETH/USD pair successfully surpasses the $1,800 threshold, it is predicted to encounter obstacles at the $1,900 level. The support levels for the ETH/USD pair will likely be at either $1,700 or $1,620.
For those interested in trading cryptocurrency, industry experts have curated a list of the 15 most promising cryptocurrencies to keep an eye on in 2023. It includes only the best and most promising cryptocurrencies in the market.
Overall, the near-term outlook for Bitcoin and Ethereum is uncertain as traders and investors watch their price movements closely. However, with the potential impact of the US government selling seized Bitcoin and ongoing regulatory developments, anything can happen.
