Bitcoin and Ethereum prices have rallied recently, with both BTC and ETH up 4% following the Federal Reserve’s rate hike. With more investors turning to cryptocurrencies as a safe-haven asset, it is likely that Bitcoin and Ethereum prices will continue to rise in the near future.
This article will provide an overview of current market conditions and discuss whether there is potential for BTC and ETH prices to rise in light of recent events.
Cryptocurrency: What is the fundamental outlook today?
Bitcoin, the world’s largest cryptocurrency, surged after the Federal Reserve raised interest rates by 25 basis points. Bitcoin has gained popularity due to various developments in the cryptocurrency sector, such as the increase in the number of institutional investors and progress in cryptocurrency legislation.
Ethereum (ETH) breached the $1,600 mark early Thursday morning, sparking optimism among the investment community. This positive sentiment is reinforced by Jerome Powell’s recent comments about falling inflation in the US.
The global cryptocurrency market jumped after the Federal Reserve announced an expected rate hike of 25 basis points, creating a favorable environment for the crypto sector. On Wednesday, the Federal Reserve raised interest rates by 0.25%, signaling the need for further tightening of monetary policy. As part of its ongoing fight against inflation, the Fed has promised “permanent increases” in the cost of borrowing.
Thus, the latest decision by the Federal Reserve System was seen as one of the good things that stimulated the cryptocurrency market and contributed to the growth of Bitcoin. Meanwhile, the rise in the number of institutional investors has contributed greatly to the cryptocurrency market’s support.
Across the ocean, progress in cryptocurrency legislation has been another key element that has had a positive impact on the crypto industry.
The struggle of cryptocurrency miners
Retail investors began to show interest in Bitcoin as institutional interest in the Bitcoin futures market grew. According to Glassnode, the last month has seen an increase in the number of addresses with more than 0.01 coins. This was seen as another key factor that boosted Bitcoin (BTC) prices.
On the contrary, the miners were not having much fun. Last week, the money earned by Bitcoin miners decreased significantly and was further negatively affected by the increase in the cost of electricity.
This could put additional pressure on miners to sell their shares, which could negatively affect the price of Bitcoin.
The US dollar took a hit after a less aggressive FOMC meeting
The U.S. dollar continued to fall after the Federal Reserve raised interest rates by 25 basis points, as expected, and promised “permanent increases” in borrowing costs as part of its ongoing fight against inflation.
Despite the favorable economic outlook, the Federal Reserve remains cautious about inflation. To counter this, the US dollar has been weakening, which in turn has created an environment that has helped support bitcoin prices.
Bitcoin price
As of today, the market price of Bitcoin is $23,900, and its value has increased by 4% in the last 24 hours. It also boasts an impressive trading volume of $29 billion and achieved the highest ranking on CoinMarketCap with a market capitalization of $460 billion.
On the 4-hour timeframe, Bitcoin is trading with a bullish bias and has immediate resistance near the $24,250 level. If a bullish breakout of the $24,250 level occurs, it could push BTC towards the next resistance area of $24,800.
Also, if the price of BTC breaks the $24,800 mark, it may reach the $25,250 level. This is due to a less-than-aggressive decision by the Federal Open Market Committee and the Federal Reserve to raise rates.
Leading technical indicators such as RSI and MACD have entered the buy zone, while the 50-day simple moving average also indicates a buy trend.
Bitcoin, on the other hand, may find immediate support around $23,550; however, a bearish breakout of this level could create more selling opportunities up to $23,250.
Ethereum price
Ethereum has gained 5% in the last 24 hours and its current price is $1,673. The 24-hour trading volume is estimated to be around $9.6 billion, and according to CoinMarketCap, it is currently ranked #2 with a real market capitalization of $204 billion.
On the technical front, Ethereum broke an ascending triangle pattern that provided resistance near the $1,660 level. If there is a bullish breakout above this level, it could push the price of ETH to $1,725 as an initial target.
On the four-hour timeframe, the ETH/USD pair formed a three-white-soldier candlestick pattern, signaling the possibility of a continuation of the bullish trend.
While support levels continue to hold around $1,660, Ethereum may experience a bearish correction towards $1,600 or $1,550.
