Bitcoin and Ethereum failed to reverse their downtrend and remained under pressure. While BTC is hovering around the $23,500 level as investors opt for safer investment options amid growing macroeconomic uncertainty.
However, the sharp fall in the value of Bitcoin followed the release of a series of reliable US data that indicated a strengthening US economy and reduced the need for government support in the form of low interest rates.
This raised concerns among investors and traders about inflation and potential interest rate hikes.
The global cryptocurrency market is currently in a downtrend and Bitcoin is trying to break the critical resistance level of $23,750, which could lead to a price drop to $22,800. In the last 24 hours, the value of Ethereum has also fallen by 0.99%.
A Bearish Crypto Market and Rising Inflation Concerns
This week, the global cryptocurrency market fell from $1.11 trillion to $1.07 trillion at the start of Tuesday. Bitcoin (BTC), the oldest and most valuable cryptocurrency, is trading around $23,000.
Other popular cryptocurrencies such as Dogecoin (DOGE), Litecoin (LTC), Ripple (XRP) and Solana (SOL) also suffered minor losses.
This is because investors are cautious about investing in riskier assets as they are concerned about growing macroeconomic problems, which have been worsened by higher-than-expected inflation rates.
Bulls take control as poor economic statistics weigh on markets
Bitcoin’s recent downtrend may not last long, as the US Department of Commerce announced on February 27 that orders for durable goods fell 4.5% in January compared to the previous month. This increased pressure on the Federal Reserve to end its rate hike program earlier than expected.
On Monday, the U.S. Census Bureau released data showing that orders for U.S. durable goods fell $13 billion, or 4.5%, to $272.3 billion in January, slightly below market expectations for down 4% after rising 4%. in december
These statistics suggest that the Federal Reserve may end its rate hike program earlier than expected.
The UK banking regulator will propose rules for the issuance of cryptocurrencies
Financial services and markets legislation is expected to enable the Bank of England’s Prudential Regulation Authority to support global economic growth. Vicky Saporta, chief executive of the Bank of England’s (BOE) Prudential Policy Office, announced in a speech on February 27 that the Prudential Regulation Authority (PRA), which is the country’s banking regulator, plans to introduce rules for the issuance and holding of digital assets.
While the decision by the Prudential Regulation Authority to propose rules for the issuance and ownership of digital assets can be seen as positive news for the cryptocurrency industry, it is unlikely to have an immediate impact on cryptocurrency prices.
Future economic events
Traders will be closely watching the release of China’s February Purchasing Managers’ Index (PMI) on Wednesday. Despite expectations that the data will show an increase in business activity compared to the previous month, the country’s huge manufacturing sector is still expected to remain close to contraction territory.
This development is important for the global economy, as China is the world’s second largest economy and a significant contributor to international trade.
In addition, the market’s attention is also focused on the upcoming US PMI data, as well as consumer sentiment and labor market indicators for January and Q4. Any signs of economic strength in the US could give the Fed more room to continue raising interest rates, which could be negative for cryptocurrencies.
Bitcoin price
Today’s Bitcoin price is $23,435 with a 24-hour trading volume of $22.2 billion. Bitcoin is down 0.30% in the last 24 hours. With a real market capitalization of $452 billion, CoinMarketCap currently holds the number one spot. Its max supply is 21,000,000 BTC and its circulating supply is 19,303,806 BTC.
The BTC/USD technical outlook remains relatively unchanged as BTC remains consolidated below the $23,750 resistance level, maintaining immediate support at $22,800. If the price falls below this level, Bitcoin may find support at $22,150.
However, as the BTC/USD pair is in an oversold zone, a bounce could occur that could potentially break through the $23,750 resistance level and lead the price to $24,250.
Ethereum price
Ethereum is currently valued at $1,628 and has a 24-hour trading volume of $6.9 billion. Over the last 24 hours, the price has decreased by 0.50%. According to CoinMarketCap, Ethereum is in second place with a current market capitalization of $199.2 billion.
Technically, the ETH/USD pair is currently facing a short-term barrier at $1,665, and a break above this barrier could indicate further upside towards $1,725. The RSI and MACD indicators have moved into the buying zone, which indicates a high probability of a sustained upward trend.
On the other hand, Ethereum’s immediate support is $1,577. A break below this level could push the price of ETH towards the $1,500 mark.
