Bitcoin and Ethereum prices remain stable despite significant volatility over the past few weeks. Bitcoin is maintaining a narrow range between $22,350 and $23,350, while Ethereum is trading volatile between $1,550 and $1,630.
Heading into the weekend, many investors are wondering if the time has come for a breakout.
The answer to this question lies in the analysis of the prices of Bitcoin and Ethereum in recent days. By looking at the historical trends of these two leading cryptocurrencies, investors can get an idea of whether this weekend could see BTC and ETH breaking out of their current ranges.
Furthermore, by understanding the main factors affecting the prices of Bitcoin and Ethereum, investors can make informed decisions about their investments.
Cryptocurrency Market Overview: The Basics of the Future Boom
The cryptocurrency’s rally was sparked by the previously released Personal Consumer Expenditure (PCE) report, which showed a slowdown in inflation at the end of last year.
As a result, traders expect the FOMC to raise interest rates by 25 basis points (or 0.25 percentage points) at the February meeting. If the Fed maintains its aggressive stance, Bitcoin (BTC-USD) could suffer.
On the other hand, the recent inflation in the US has served as confirmation for investors to buy Bitcoin and other cryptocurrencies.
Additionally, the increase in the number of institutional investors in the United States was responsible for the rise in Bitcoin prices.
New York has passed revolutionary legislation that allows cryptocurrency payments
Since the beginning of 2023, there have been quite a few developments in the cryptocurrency space that have helped support and grow the cryptocurrency market. On January 26, the New York State Senate introduced a bill that would allow government agencies to accept cryptocurrency as an official form of payment.
This can help legitimize the use of digital currencies in conventional commerce.
If New York Assembly Bill 2532 is passed and becomes law, cryptocurrencies will be accepted as payment under certain conditions, benefiting the cryptocurrency sector in the long run. It should also be noted that this bill does not appear to support the commercial use of cryptocurrencies.
Alternatively, changes will be made to existing legislation to allow government agencies to use cryptocurrencies.
However, the accepted currencies in the bill are Bitcoin Cash, Ethereum, Litecoin and Bitcoin. The bill was authored by Assemblyman Clyde Vanel, who also proposed legislation on cryptocurrency fraud and the formation of industry task forces.
Wendy Rogers introduces bills to make Bitcoin legal tender in the US
Senator Wendy Rogers of Arizona is making her mark in the US Senate by introducing a number of cryptocurrency bills. Her work is bringing about several cryptocurrency-related changes and making a positive impact on the state of Arizona.
It is important to note the efforts of Senator Wendy Rogers, who was actively involved in the issuance of Bitcoin banknotes. Rogers mentioned a study by Goldman Sachs that found bitcoin to be the most profitable asset in the world, regardless of geographic region. These data indicate that Bitcoin has become the leader in the world.
The United States is considering officially recognizing Bitcoin (BTC) as legal tender. If this proposal is successful, it will open up new opportunities for the cryptocurrency and could lead to exponential growth in its value.
A rising US dollar could limit BTC’s gains
The U.S. dollar was broadly flashing green and rebounded from eight-month lows as expectations for a soft landing on the economy engineered by the Federal Reserve and a pause in its aggressive monetary tightening next week rose in response to slowing inflation data.
Consumer spending in the United States fell for the second straight month in December, according to a Commerce Department report.
The report also showed the slowest growth in personal incomes in eight months, largely due to moderate wage growth – though not necessarily a positive sign of inflation.
Bitcoin price
Bitcoin is currently valued at $23,004 with a 24-hour trading volume of $22 billion. Over the past 24 hours, Bitcoin has been on a choppy rise, up less than 0.50%. With an active market cap of $435 billion, CoinMarketCap currently ranks #1.
Bitcoin is currently facing resistance at $23,250, while immediate support remains firm at $22,500. If the price of Bitcoin falls below $22,500, a bearish market trend is likely and it could reach $21,500. If it continues to fall from there and reaches $20,450, we may see an even more bearish trend.
Relative strength index and moving average convergence divergence are overbought. However, a bullish engulfing candle was recently seen, suggesting that the bullish market trend will continue.
Bitcoin’s immediate resistance level is $23,250; if it exceeds that price mark, it could reach $23,900 and $25,150.
Ethereum price
Ethereum is currently trading at $1,595 and is down 1.5% in the last 24 hours with a total trading volume of $6 billion. It is ranked #2 on CoinMarketCap with a real market capitalization of $195 billion.
In the 4-hour time frame, the ETH/USD pair fell sharply from the $1,600 level. This decline was caused by the breakout of the ascending channel and the subsequent close below this price point. The downtrend eventually bottomed out at $1,525 per share.
Ethereum may face resistance at $1,600. If it can overcome this barrier, its price can rise to $1,675. Also, there is a possibility of a bearish trend that starts at $1525 and could extend to $1445 if it breaks.
