Bitcoin and Ethereum Price Prediction | BTC consolidates near $22,750, BTC Bulls aims for Rally
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On January 23, investors appeared to be waiting for a strong fundamental cause to spark a breakout as popular cryptocurrencies like Bitcoin and Ethereum were consolidating in small ranges.
Both of the top cryptocurrencies have recently extended their protracted winning streaks and are currently being actively bid at their highest values since mid-September, or about $22,600 mark and $1,600 mark, respectively.
As investors have ignored a number of issues facing the cryptocurrency industry this year, including the most recent one—Genesis Global Holdco LLC filing for Chapter 11 bankruptcy protection—Bitcoin has increased by almost 37% so far.
To keep Bitcoin above $22,000, assuming equity markets continue their recent uptrend, the current advance might be ascribed to a weaker US currency, favorable Federal Reserve remarks, as well as solid CPI numbers.
Bitcoin Reaches Fresh Annual Highs After Positive CPI Data
The total inflation rate for all urban consumers decreased by 0.1%, according to Bureau of Labor Statistics (BLS) CPI statistics issued on January 12. This looks to have been a major factor in the rise of BTC and ETH.
CPI data show that inflation has been falling for six consecutive months. However, one of the biggest dips in the analysis was the sudden decline in gasoline prices. In actuality, the cost of both new and secondhand cars has decreased.
The CPI data therefore includes a warning that the price of services and food is still extremely high. If inflation has reached its peak, the Federal Reserve may reconsider its aggressive rate raise policy.
Many traders feel that if the Federal Reserve altered its current policy of quantitative tightening and interest rate hikes, Bitcoin prices could surge. The interest rate decision, on the other hand, is expected the day after the FOMC meetings begin on January 31.
Positive inflation data, which would enhance the value of BTC and equities, could influence the FOMC decision. Investors' trust in the cryptocurrency market may be increasing as a result of CPI data indicating that the US Federal Reserve would gradually hike interest rates beginning in 2023.
Bitcoin Booms as The US Dollar Plunges: Here’s What You Need To Know
A weakened US dollar, on the other hand, is a good factor for bitcoin's price. As we all know, as the US dollar weakens, so does sentiment toward riskier assets like Bitcoin.
As a result, if interest rates begin to fall and the economy grows, Bitcoin may continue to soar in tandem with good equities markets. The price of bitcoin is influenced by the macroeconomic climate.
What Is Driving the Recent Global Crypto Market Mood?
The global cryptocurrency market managed to sustain its upward trajectory and remain well above the $1 Trillion level. However, the present uptick could be attributed to institutional investors that have been long-term holders of the largest digital asset, eventually raising demand for BTC.
Another factor boosting the cryptocurrency market is the increased possibility that the Federal Open Market Committee (FOMC) would raise interest rates by only 25 basis points (0.25 percentage points) at its February meeting, down from the 50 basis point hikes witnessed in December.
Bitcoin Price
Bitcoin is currently at $22,700 mark, with a $23 billion daily trading volume. On a daily basis, Bitcoin is facing significant resistance at a double-top pattern at $22,830. If the candles fall below this level, a bearish correction is expected to start and last until the $21,500 barrier is hit.
The RSI and MACD indicators are overbought, indicating that BTC may have a negative correction. If Bitcoin falls below $21,500, it might fall as low as $20,450.
Source - CoinMarketCap
On the upside, the immediate resistance level for Bitcoin is $22,800, and a break above this level may see BTC reach $23,900 and $25,150.
Ethereum Price
In the last 24 hours, the price of Ethereum is at $1,600 mark, with a trading volume of $7 billion. The ETH/USD pair has gained an immediate support at the $1,610 level, and the closing of candles above this level is likely to drive an uptrend in BTC.
On the upside, ETH is likely to find an immediate resistance at the $1,675 level, and a bullish crossover above this level can expose ETH toward the $1,750 level.
Source - CoinMarketCap
On the downside, a bearish breakdown of $1,610 might open up additional selling space till $1,550.
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