January 18 bitcoin began to experience a bearish correction. It has received support around $20,500 and its trend seems to be sustainable. In this article you will find the latest information on the fundamental outlook of BTC and ETH etc.
Bitcointhe world’s largest and best-known cryptocurrency, failed to extend its 14-day rally, falling to around $20,759 as the current bearish wave in the cryptocurrency market weakened risk assets such as Bitcoin and other cryptocurrencies.
According to the latest data, the valuation of the global cryptocurrency market has fallen by almost 4% in the last 24 hours, from $999 billion to $969 billion.
Meanwhile Ethereum the second largest cryptocurrency, was unable to sustain its growth and lost more than 4% of its value, falling to $1,526.
- Most cryptocurrencies have seen a sharp drop due to the market reaction to the US ban on the Bitzlato exchange.
- The negative monthly purchasing power index (PPI) of -0.5 had a detrimental effect on the financial and cryptocurrency markets. Although Bitcoin (BTC) and other cryptocurrencies initially rose in value in the cryptocurrency market, their growth did not continue due to the absence of major monetary policy adjustments by the US Federal Reserve.
- On a positive note, crypto whales haven’t sold any of their holdings since the start of the year. This is believed to be one of the key factors that prevented further losses in cryptocurrencies.
- Another factor that has affected bitcoin prices has been the decline in bitcoin mining stock prices. Most of the 18 bitcoin mining stocks tracked by The Block fell on the day, while one stock advanced.
The US has accused Crypto Exchange Bitzlato of money laundering
According to officials, the US Department of Justice and the Treasury Department charged Bitzlato Ltd. in money laundering and detained the creator of the company in Miami.
Deputy Attorney General Lisa Monaco recently announced that the Hong Kong-based platform Bitzlato had been shut down and its creator, Anatoly Legkodymov, had been taken into custody in the United States.
This will prevent Bitzlato from providing services to criminals with ties to Russia.
The US initiated the Bitzlato campaign as the largest fight against crypto-criminals. Its ripple effect caused a downturn in the global cryptocurrency market and shook investor confidence.
How the drop in US economic data affects crypto markets
Data from the United States suggests a recession may already be in the offing, as industrial production and retail sales fell 0.7% and 1.1% in December from the previous month.
Meanwhile, the producer price index (PPI), which had previously risen 7.3%, rose at a slower annual rate of 6.2%.
This indicates a decline in purchasing power, which had a mixed impact on financial markets.
Ethereum layer-2 growth
Ethereum Layer 2 networks have seen rapid expansion over the past few months, and this pattern is expected to continue through 2023.
However, the number of daily active users has increased in the main Layer 2 networks, which has led to increased costs for the respective ecosystems. This was seen as a positive factor that could help limit the continued losses in ETH prices due to the crypto bear market.
Bitcoin price
Now the price bitcoin is at $20,550 after falling 1.50% in the last 24 hours with a trading volume of $29 billion. Starting with the initial forecast on January 17, expected the value of bitcoin remained stable.
On the 4-hour timeframe, Bitcoin has immediate support near $20,630, which is being extended by a 23.6% Fibonacci retracement. If a bearish breakout of $20,630 takes place, BTC price could find itself below the next support level of $19,985, which marks the 38.2% Fibonacci retracement level.
However, Bitcoin has formed a Three Inside Up candlestick pattern that could potentially fuel BTC’s uptrend.
On the other hand, BTC could jump to the $21,200 level and further buying could take BTC to $21,600. A bullish breakout of this level could trigger a break above $21,600 and take BTC towards the $22,000 mark.
Ethereum price
Ethereum market price has fallen 4% in the last 24 hours to $1,529.25 on a trading volume of $10 billion. Nevertheless, the digital asset continues to be one of the best cryptocurrencies in terms of value and trading volume.
Currently, Ethereum ranks second on CoinMarketCap and boasts a real market capitalization of US$187 billion. It has an active circulating supply of 122,373,866 ETH coins and an undetermined maximum supply.
The ETH/USD pair failed to clear the double upper resistance barrier of $1,600, resulting in its price falling to $1,500 due to strong bearish sentiment.
Ethereum’s most important support level is currently set at $1,500. And if it breaks, selling pressure is likely to increase until it reaches $1,440 based on the 38.2% Fibonacci retracement. If this is also broken, ETH could fall further to the $1,350 bottom and find itself in a difficult position.
The $1,500 support level is likely to lead to a rally to the $1,660 level, which will serve as resistance.
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Fight Out (FGHT)
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C+Charge (CCHG)
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Meta Masters Guild (MEMAG)
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