• Bitcoin (BTC) and Ethereum (ETH) have been unable to halt their losses below the $23,000 and $1,600 marks, respectively.
• A critical week of economic developments in the US will test the market’s resilience with nonfarm payroll data and remarks by the Federal Reserve Chair.
• Market sentiment has had a negative impact on prices, but there is hope that this bearish trend may not last long if investors accept Silvergate suspension as minor setback.
Bitcoin (BTC) and Ethereum (ETH), two of the most popular cryptocurrencies in the world, have been unable to halt their losses and are still trading in the red below the $23,000 and $1,600 marks, respectively. Traders are hesitant to place any strong bids ahead of a critical week of economic developments in the United States. This week will see the release of nonfarm payroll statistics and remarks by US Federal Reserve Chair Jerome Powell, making it a crucial moment for the market. BTC has faced difficulties in rising above the $22,800 level, and if the bears succeed in pushing the price below its current level, then next support level would be $21,480 while Ethereum also sees lack of trading activity around $1,500 mark indicating hesitation among buyers and sellers.
Risk-Off Market Sentiment
The global cryptocurrency market has been in a downward trend for past few weeks with prices falling across board due to bearish market sentiment impacting price of Bitcoin negatively. The current condition could also have an effect on supply of BTC as people lose confidence in market leading them to sell Bitcoin holdings increasing supply & driving prices down further.
Glimmer Of Hope
There’s a glimmer of hope amidst current dip in prices of Bitcoin & Ether as if investors consider Silvergate suspension as minor setback rather than major negative event then current bearish trend may not last long since Bitcoin & Ether have significant market capitalization & closely interconnected meaning positive outcome for one cryptocurrency could favorably affect other too.
Price Prediction For BTC
$BTC is on its way but not there yet ideally should drop a bit further before buying opportunity arises when blue indicator cross baseline with 85% success rate recorded over 7 years period according to Ayyad (@AyyadYnm).
As we can see from analysis above that although negative sentiment continues to weigh heavily on cryptocurrency markets however there’s still some light at end tunnel as bullish outlook might prevail depending upon how traders respond to economic developments taking place this week & investors response towards Silvergate suspension incident which could lead markets back into green territory soon enough.