BTC and ETH Failed to Sustain the Pressure
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BTC and ETH had built up strong momentum that had helped them push over the $23,000 and the $1,600 levels respectively.
Unfortunately, the bulls were unable to sustain the pressure they faced from the bearish side. This caused the prices of these assets to decline.
Their declines also caused a noticeable pullback in the overall valuations of the crypto market. It reportedly went down by 3.52%. Luckily, the valuation did not fall below the $1 trillion mark.
With the start of 2023, the stars started to shine over Bitcoin as its price has surged more than 40% since the first of January.
However, as the price of the asset has fallen below the $23k level, it seems that the buying momentum of the investors is fading.
The price of the asset has now started to move in the downward direction ever since the bulls lost their fight against the bears at $23k.
The Feds Decision May Drive the Trend
Whether Bitcoin or any other cryptocurrency, their trend is somewhat in the hands of the US Feds.
The US Feds are to announce whether they will keep hiking the interest rates by 50 bps or slash them to 25 bps hikes. If that happens, then the trading value of the dollar will move lower.
With the dollar price losing its strength, investors will eye Bitcoin as the perfect hedge fund, which would increase its adoption. This would eventually bring back the strong rallies and push BTC’s price much higher.
Something similar may happen to Ethereum as the Feds come up with their final decision over the interest rate hikes.
At the time of writing, Bitcoin’s trading price is $22,667 and the trading volume for the largest crypto stands at $27 billion.
In the past 24-hours, the value of the asset has recorded a 1.50% dip and its overall valuation stands at $437 billion.
If the bears increase their selling pressure, then BTC’s trading price may fall to $22,325, which is the support level for the asset.
On the other hand, if the price rebounds to $23,250 (strong resistance level) and crosses it, then its price may surge to $23,900. Going forward, the bulls will have the opportunity of increasing their buying power.
If more investors keep on entering the trend, then the trading price of Bitcoin may surge to a high of $25,150.
Bitcoin’s Downward Prediction
On the other hand, if the bears take control, they will try and bring BTC below the $22,325 level. If they succeed in doing that, they will increase their selling pressure to pull BTC’s price down to $21,500.
Going forward, they may continue increasing their selling power and if the bulls move out of the way, BTC’s price may fall to $20,450.
At the time of writing, ETH is hovering at $1,549, having recorded a 5.34% dip in the past 24-hours. The trading volume for ETH in the past 24-hours has been worth $9.1 billion.
The overall valuation of ETH is $189 billion and the asset’s value is expected to surge significantly. The dip may be a test of the bulls and if they do not falter and keep pushing, ETH may again rise over $1,600.
In that case, the trading price of the asset may cross through the resistance level and then move to the next one. The next obstacle for ETH is expected to be $1,675.
Downside for ETH
On the negative side, if ETH fails to retake $1,600, then the bears may have the trend in their hands. They may drive its price down to $1,525 and then go for another selling spree.
They will try their best and bring the trading price of the asset down to a low of $1,445.