Bitcoin and Ethereum Price Prediction | BTC Network's Mining Difficulty Rises to All-Time High
Powered by Froala Editor
Bitcoin (BTC) and Ethereum (ETH), the world's two most popular digital currencies, continued their long upward trend and broke through highs of $21,000 and $1,500, respectively. The Bitcoin network's mining difficulty has recently achieved an all-time high, making it more difficult for miners to profit.
This increase in difficulty may affect the price of Bitcoin and Ethereum by reducing the profitability of mining these digital coins.
Over the weekend, the total market value of all crypto assets surpassed $1 trillion for the first time since the FTX crash in November 2020. This is a significant achievement that demonstrates how far digital currencies have progressed.
So far, the cryptocurrency market has had a fantastic year, with the value of most major coins soaring considerably. Other digital currencies performing well include Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP).
What supports Bitcoin and Ethereum?
Although there have been claims of improved macroeconomic conditions, this may not be the main factor driving up Bitcoin prices. However, the rise of the stock market, decreasing inflation, and low interest rates aided the world's two most renowned digital currencies, Bitcoin (BTC) and Ethereum (ETH).
Because the Consumer Price Index (CPI) shows that inflation is dropping, the market anticipates that the Federal Reserve's rate hike pace will slow.
The fact that the United States' central banks have successfully decreased inflation while keeping the economy from entering a recession is obvious proof that bulls have returned to the market. The current market trend is projected to continue if macroeconomic conditions stay good.
Bitcoin Price
Bitcoin's price increased to $21,100 mark on Monday. Its immediate resistance is at $21,350, and a bullish breakout could drive the price to $22,850.
Furthermore, Bitcoin may see significant resistance near $24,500. The formation of "three white soldiers" indicates the probability of a continuation of the uptrend. On the downside, Bitcoin might find immediate support around $21,000 or $20,500.
Source - CoinMarketCap
Ethereum Price
The value of Ethereum has recently increased, with the major support level set at $1,500 mark. Closing daily candles over $1,500 exposes the price to the next resistance area of $1,660.
After breaking out of the symmetrical triangular pattern to the upside, Ethereum, like Bitcoin, developed a "three white soldiers" and a bullish engulfing candle. All of these technical indicators indicate that investors have a strong bullish bias.
Source - CoinMarketCap
ALSO READ - UoM Consumer Sentiment on the Docket
