On January 23, leading cryptocurrencies such as Bitcoin and Ethereum consolidated in tight ranges as investors seemed to be waiting for a major fundamental to trigger a breakout.
Recently, both leading cryptocurrencies extended their long winning streaks and remain good bets around their best levels since mid-September, around $22,689 and $1,634 respectively.
Bitcoin is up about 37% this year as investors ignore several crypto sector challenges, the latest of which was Genesis Global Holdco LLC’s Chapter 11 bankruptcy filing.
However, the current rally can be attributed to a weaker US dollar and positive statements from the Federal Reserve, as well as positive CPI statistics, which could keep Bitcoin above $22,000 if equity markets continue their recent rally.
The most popular altcoins that win and lose
Axie Infinity (AXS) , Osmosis (OSMO) and Filecoin (FIL) were the best performers in the last 24 hours. OSMO rose nearly 14% to $0.9835, while AXS rose more than 23% to $11.40. Meanwhile, FIL gained just under 13% to trade at $5.60.
Kava (KAVA) is down about 4.45% to $1.03 in the last 24 hours. Casper (CSPR) fell more than 3.35% to about $0.036, while ApeCoin (APE) fell about 10.25% to $5.50.
Bitcoin hit new yearly highs after positive CPI data
Data from the Bureau of Labor Statistics (BLS) released on January 12 showed that headline inflation for all urban consumers fell 0.1%, which appears to have been the main driver of BTC and ETH gains.
According to CPI statistics, inflation has been declining for six months in a row. However, the sharp drop in gasoline prices was one of the biggest drops in the analysis. In fact, prices for both new and used cars have fallen.
As a result, CPI data warn that the cost of services and food remains quite high.
If inflation peaks, the Federal Reserve may reconsider its strategy of aggressively raising interest rates.
Many traders agree that Bitcoin prices could rise if the Federal Reserve reverses its current policy of quantitative easing and interest rate hikes. However, the decision on the interest rate is expected the day after the start of the FOMC meeting on January 31.
The FOMC’s decision could be influenced by positive inflation readings, which would boost the value of BTC and stocks. Investors’ confidence in the cryptocurrency market may be growing due to CPI data indicating that the US Federal Reserve will gradually raise interest rates starting in 2023.
Bitcoin Soars As US Dollar Falls: What You Need To Know
On the other hand, a weaker US dollar is a positive factor for the price of Bitcoin. As we all know, when the US dollar falls, sentiment for risky assets like Bitcoin rises.
As a result, if interest rates start to fall and the economy improves, Bitcoin can continue to rise along with positive equity markets. The macroeconomic environment affects the price of Bitcoin.
What is driving the latest sentiment in the global cryptocurrency market?
The global cryptocurrency market has been able to maintain its upward trend and remain a good bet above the $1 trillion mark. However, the reason for its current rise can be attributed to institutional investors who have owned the largest digital asset for a long period of time, ultimately increasing the demand for BTC.
Another factor supporting the cryptocurrency market is the growing likelihood that the Federal Open Market Committee (FOMC) will raise interest rates by just 25 basis points (0.25 percentage points) at its February meeting, down from a 50 basis point hike. points, which was observed in December.
The COVID-19 crisis in China
On the other hand, the rise in the number of COVID-19 cases in China, which raised concerns about the country’s short-term economic prospects, was expected to affect the cryptocurrency market.
As a result, this was seen as a significant factor that could stop the future growth of Bitcoin’s price.
Bitcoin price
Bitcoin is currently worth $22,740 and has a daily trading volume of $23 billion. On the intraday timeframe, Bitcoin is facing strong resistance in a double top pattern at $22,830. If the candles break below this level, a bearish correction is expected to begin, which will continue until the $21,500 mark is reached.
The RSI and MACD indicators are overbought, indicating the possibility of a bearish BTC correction. If the price of Bitcoin falls below $21,500, it could fall to $20,450.
On the downside, Bitcoin’s immediate resistance is $22,800, and a break above this level could see Bitcoin test $23,900 and $25,150.
Ethereum price
In the last 24 hours, the Ethereum price was $1,635 and the trading volume was $7 billion. The ETH/USD pair found immediate support at $1,610, and a candle close above this level is likely to trigger an uptrend in BTC.
On the other hand, ETH is likely to find immediate resistance at $1,675, and a move above that level could take ETH to $1,750.
On the downside, a bearish breakout of $1,610 could open up additional selling opportunities up to $1,550.
3 coins to look out for during the presale
The Bitcoin market is expanding day by day. Presale coins often allow investors to get in on the ground floor of a new project and reap the benefits of that project’s success, while also exposing themselves to potential risks.
With that in mind, here are three coins to look out for during the presale.
Fight Out (FGHT)
Fight Out — a simple and inexpensive way to stay active. By purchasing FightOut Tokens, you will gain access to expert personal training services at a reasonable price. This means that even people on a tight budget can benefit from being physically active.
Despite Move2Earn’s full feature set, its ability to analyze physical and mental fitness, as well as its NFT Avatar and social competition component, sets it apart from other M2E programs.
Users can test and track their progress in strength, cardiovascular endurance and more with Fight Out’s real-time performance tracker.
C+Charge (CCHG)
C+Charge creates a revolutionary online payment solution for electric vehicle (EV) owners. Users will be able to exchange their initial payment for credits that can be used to purchase carbon credits. The ultimate goal is to significantly reduce greenhouse gas emissions caused by driving.
Given its true transformative potential, this technology could completely disrupt the carbon credit market. This allows a wider range of companies to join and also adds value to them.
VCM is expected to be worth $100 billion by 2030, making it an exciting investment opportunity for corporations. The C+Charge pre-sale raised around $361,925, demonstrating the huge demand for VCM.
Meta Masters Guild (MEMAG)
In just a few days, the price Meta Masters Guild increased from $200,000 to $550,000. This significant increase means that the public has a high level of confidence in the company’s potential to prosper and generate profits in the future. Meta Masters Guild will release its first mobile game in the third quarter of 2023.
The MEMAG network has been around for some time and allows users to mine and manage their own coins, as well as trade on the open market. They are also working on games where participants can earn rewards, as well as games based on Web3, an Ethereum-compatible technology.
Currently, investing in MEMAG starts with the purchase of $10 worth of MEMAG tokens. You will get one token for one cent if you participate in the presale; early investors will have a limited window of opportunity to participate.
MEMAG’s presale raised nearly $1 million, showing huge demand.
