Bitcoin and Ethereum Price Prediction | What Are The Chances Of BTC Reaching $22,000?
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Bitcoin began to face a bearish correction on January 18th. It gained support near $20,500 and the trend appears to be sustained.
Bitcoin, the world's largest and most well-known cryptocurrency, failed to continue its 14-day positive surge, falling to about $20,759 as the cryptocurrency market's current risk-off wave undermined riskier assets like Bitcoin and other cryptocurrencies.
The worldwide crypto market capitalization has declined by about 4% in the previous 24 hours, from $999 billion to $969 billion, according to the latest available estimates.
Meanwhile, Ethereum, the second-largest cryptocurrency, failed to maintain its climb and fell by more than 4% to $1,526.
The majority of cryptocurrencies fell sharply as a result of the market's reaction to the US ban on the Bitzlato exchange.
The -0.5 month-on-month Purchase Power Index (PPI) had a negative impact on the financial and cryptocurrency markets. Although Bitcoin (BTC) and other cryptocurrencies originally gained in value in the crypto market, their rise did not last in the absence of significant monetary policy changes from the US Federal Reserve.
On the plus side, the crypto market's whales have not sold any of their holdings since the beginning of the year. This is regarded as one of the most important aspects in preventing future losses in cryptocurrencies.
Another factor weighing on Bitcoin prices was the decline in the value of Bitcoin mining stocks. The majority of The Block's 18 Bitcoin mining equities declined on the day, with only one stock increasing.
US Charges Crypto Exchange Bitzlato Money Laundering
According to sources, the US Justice Department and Treasury Department have accused Bitzlato Ltd. of money laundering and jailed the company's founder in Miami.
Deputy Attorney General Lisa Monaco recently announced the shutdown of the Hong Kong-based platform Bitzlato and the arrest of its founder, Anatoly Legkodymov.
This will restrict Bitzlato from offering services to Russian-connected criminals.
The Bitzlato campaign was launched by the United States as the most thorough crackdown on crypto-criminal activity to date. Its repercussions undermined investor confidence and created a collapse in the worldwide bitcoin market.
Bitcoin is currently trading at $20,800 mark, down 1.50% in the last 24 hours, with a $29 billion trade volume. Bitcoin's expected value has stayed stable from the initial projection on January 17th.
Bitcoin has an immediate support level near $20,630 on the 4-hour period, which is extended by the 23.6% Fibonacci retracement. If the bearish breakthrough of $20,630 occurs, the BTC price may be exposed to the next support level of $19,985, which represents the 38.2% Fib.
On the upside, BTC may jump to $21,200, and more purchasing could push BTC to $21,600. A bullish breakout of this level has the potential to cause a breakout over $21,600, leading BTC to the $22,000 mark.
Ethereum's market price has fallen by 4% in the last 24 hours, to $1,500 mark with a $10 billion trading volume. Nonetheless, in terms of value and trading volume, the digital asset remains one among the top cryptocurrencies.
On CoinMarketCap, Ethereum is presently ranked second, with a live market value of 187 billion USD. It now has an active circulation of 122,373,866 ETH coins, with no maximum supply defined.
Due to strong bearish sentiment, the ETH/USD pair has been unable to break through the $1,600 double top resistance barrier, causing its value to fall to $1,500.
The most crucial support level for Ethereum is currently placed at $1,500. If this fails, selling pressure will likely increase until it approaches $1,440, the 38.2% Fibonacci retracement. If it is also breached, ETH might fall even lower below $1,350, putting it in a bad position.
A $1,500 support level is expected to cause an increase to $1,660, which will serve as a resistance level.
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