Bitcoin‘s price experienced a surge, nearly touching $53,000, before it faced a downturn. The recent 24-hour losses are linked to the slowing inflow of ETFs and reactions to the Federal Reserve’s minutes and NVIDIA’s earnings reports. Despite these factors being non-adverse to cryptocurrencies, Bitcoin’s recovery from this selling pressure has been sluggish.
Bitcoin’s Market Adaptation
The Federal Reserve indicated a slower pace in interest rate reductions than the market had hoped for, prompting investors to recalibrate their expectations. The U.S. stock market’s decline is seen as a direct result of this repositioning. The Fed’s guidance tempered the previously bullish sentiment, pushing the anticipated timeline for rate cuts from March to mid-year, leading to understandable market corrections.
Bitcoin struggles to maintain its position above $52,000 and has yet to reclaim this crucial threshold. A drop below $50,000 could signal a retreat for short-term traders and potentially result in a steeper drop. However, if Bitcoin can consistently hold above $52,000, the market trend may shift positively.
Amid market uncertainty, a descent to the 20-day exponential moving average at $48,842 wouldn’t spell disaster, but a significant downturn could bring about double-digit losses for altcoins. Conversely, a market upturn would likely need to persevere toward the $60,000 mark for Bitcoin. Investors on the lookout for a substantial dip are tracking the $44,924 and $40,600 support levels.
Ethereum’s Current Resistance
Ethereum, too, is affected by Bitcoin’s performance, with its own potential for gains this year being hindered. Nonetheless, Ethereum holds steady, attracting buyers around $2,947, and has briefly surpassed the $3,000 mark, which offers encouragement for the bullish investors.
A multi-day downtrend is not typically anticipated during a robust uptrend, and decisive moves for Ethereum are expected before week’s end. A target of $3,300 for Ethereum appears viable for the near term. If the trend reverses, support levels at $2,717 and $2,680 come into focus, with a further dip potentially reaching $2,467.
