Bitcoin and Ethereum Price Prediction | Will BTC's Price Surge to Over $23,000 Lead to A Bullish Rally?
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Bitcoin, the world's most valuable cryptocurrency, has risen to $23,000 mark for the first time since August 19. BTC broke through the $23,000 barrier for the first time in five months over the weekend, which is great for the cryptocurrency industry.
Meanwhile, the second-largest digital coin, Ethereum, surpassed $1,600 mark for the first time since November 7, 2022.
However, the reason for its bullish tendency could be linked to institutional investors who are boosting their holdings in preparation of the next bull run.
According to on-chain statistics, the price of bitcoin (BTC) has recently climbed, benefiting both short-term and long-term investors.
It is also worth mentioning that the proportion of Bitcoin holders now benefitting in the near term has grown to 97.5%, the highest level since November. Long-term Bitcoin holders, on the other hand, have benefited from the cryptocurrency.
Aside from that, investors ignored the myriad challenges affecting the cryptocurrency industry, most recently Genesis Global Holdco LLC's Chapter 11 bankruptcy filing. As a result, BTC gains remained untouched.
Risk-On Crypto Mood Pushes Bitcoin and Ethereum To New Highs
The global cryptocurrency market has maintained its upward trajectory and is now nearing $1.06 trillion in value. This happened after bitcoin, the world's most valuable cryptocurrency, breached the $23,000 mark for the first time in five months, indicating that the cryptocurrency industry has entered a new age.
However, institutional investors are the key drivers of increased BTC demand, as they increase their holdings in anticipation of the next bull run.
Bitcoin, the world's largest digital asset, is in exceptionally good spirits after surging more than 36% this month. Moving on, the next key turning point in the bitcoin market could occur at next month's Fed meeting.
How The Bearish US Dollar Is Underpinning Bitcoin's Price Rally
The declining value of the US dollar is another reason influencing the cryptocurrency's price. The broad-based US dollar remained on the defensive on Tuesday, trading at a nine-month low against the euro and giving back recent gains against the yen as traders assessed the risk of a US recession and the path of Federal Reserve policy.
The US dollar index, which compares the greenback to a basket of six rival currencies including the euro and yen, lost 0.09% to 101.92, closing in on Wednesday's 7-1/2-month low of 101.51.
BTC Bulls: Short-Term And Long-Term Holders Are Winning Big Time
According to on-chain statistics, the price of bitcoin (BTC) has climbed dramatically in recent weeks, providing rewards for both short- and long-term investors.
The percentage of Bitcoin holders making short-term profits had grown to 97.5% at the time of writing, the highest figure since November.
According to Glassnode, long-term Bitcoin holders have also benefited from Bitcoin.
Bitcoin is currently worth $23,000 mark and has a 24-hour trading volume of $27 billion. Bitcoin has increased by more than 1% in the last 24 hours. CoinMarketCap now ranks first, with a live market value of $435 billion.
Bitcoin is currently facing significant barrier near $23,250, with immediate support at $22,500. If the candles fall below $22,500, a bearish correction will almost surely begin and extend until the $21,500 barrier is reached. Bitcoin might go as low as $20,450 if it falls below $21,500.
The RSI and MACD indicators are overbought, but the recent bullish engulfing candle suggests that the bullish trend may continue. Bitcoin's immediate resistance level is $23,250, and a break above this level might expose BTC to levels as high as $23,900 and $25,150.
In the last 24 hours, the price of Ethereum was $1,600 mark, with a trading volume of $8.3 billion. The ETH/USD pair has found immediate support at $1,610, and candles closing above this level are expected to cause BTC to rise.
On the upside, ETH is expected to encounter immediate resistance at $1,675, with a bullish crossover over this level potentially exposing ETH to $1,750.
A bearish breakdown of $1,610 may open up additional selling opportunities until $1,550.
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