Bitcoin (BTC) and Ethereum (ETH) both managed to remain stable at around $23,000 and $1,600 respectively. Previously, BTC went on to reach a record-high of more than $24,000 following the Federal Reserve’s decision to raise interest rates by 25 basis points.
Later today, the US January Nonfarm Payrolls are expected to be released today, which could have a major impact on the prices of BTC and ETH.
The cryptocurrency market has been strongly affected by the recent US Federal Reserve policy. After the Fed announced that it would reduce interest rate hikes to 25 basis points, Bitcoin and other digital assets saw an increase in value.
On Thursday morning, BTC prices reached a 6-month high as it briefly broke the $24,000 threshold. Following this trend, Ethereum has witnessed a significant rise and is currently trading at $1,641.
Additionally, traders are hesitant to make any strong bids as the upcoming Non-Farm Payrolls (NFP) data, scheduled for today, will likely influence the Bitcoin price. These figures are crucial because they will guide the Fed’s future decisions.
Additionally, the strong employment growth indicates that the Fed will maintain its dovish stance in the upcoming sessions.
Big Day for Bitcoin; US January Nonfarm Payrolls Ahead
The US January Nonfarm Payrolls report is due today and it could be a big day for Bitcoin. This report provides insight into the health of the US economy and could have an impact on the price of Bitcoin. The report is expected to show that the US economy added fewer jobs in January, which would be a positive sign for Bitcoin investors.
Additionally, other economic indicators such as ISM Services PMI, and Final Services PMI will also be released today and could influence Bitcoin prices.
Investors should pay close attention to these reports in order to make informed decisions about their investments in cryptocurrencies.
Analysts from TD Securities have predicted a 220K rise in US non-farm payrolls and an estimated expansion of the Unemployment Rate to 3.6%.
According to experts, the Average Hourly Earnings have increased to 4.9% yearly, while remaining unchanged at 0.3% on a monthly basis. This marks an increase from the previous release of 4.6%.
With demand for labor exceeding supply, job seekers have more negotiation power. This could result in higher price indices, which could counterbalance expectations for a slowdown in the Federal Reserve’s policy of tightening.
Best Insurance is Bitcoin, Says Cathie Wood
According to Cathie Wood, CEO of ARK Invest, Bitcoin is a great asset to protect wealth and provide insurance for those around the globe who are financially disadvantaged. This point of view has likely caused its price to appreciate.
Cathie Wood, a strong advocate of cryptocurrency, is confident that Bitcoin will hit the $1 million mark. She believes that digital currency provides equal opportunities for both the wealthy and those with more limited financial resources to secure their wealth.
Bearish US Dollar & Dovish Fed’s Stance
The broad-based US dollar failed to halt its decline and fell even further. The dollar index fell 1% to 101.08 points after the Fed’s decision on Wednesday, its lowest level since April 2022. The dollar fell to a nine-month low against a basket of currencies on Thursday, despite the Federal Reserve’s reaffirmation of its commitment to keep raising interest rates.
The central bank raised interest rates by 25 basis points (bps) to reflect recent developments in the fight against inflation. However, Fed Chair Jerome Powell noted that the country’s inflation rate remained high and expressed uncertainty about the number of rate hikes the bank would need to make in order to alleviate pricing pressures.
Bitcoin (BTC) is currently priced at $23,480 with a 24-hour trading volume of $29 billion. It holds the top spot on CoinMarketCap and has a market capitalization of over $452 billion. There are 19.28 million BTC coins in circulation and a maximum supply of 21 million coins.
On the technical front, Bitcoin is heading lower towards an immediate support area of $23,300. If this level is broken, further selling could push the price down to $23,000, where an upward trendline may provide support.
The RSI and MACD indicators are signaling a selling trend, so additional selling pressure could push the BTC price toward the next support area of $22,750.
Since the 50-day exponential moving average is still suggesting a buying trend above $23,300, we may see a bullish bounce-off in the BTC/USD pair. On the upside, a bullish breakout of the $23,950 level could expose the BTC price toward the $24,500 mark.
Ethereum‘s current trading price is $1,639 and the 24-hour volume stands at $9.1 billion. The crypto asset has seen a 1.50% decline in the last 24 hours. It currently holds a market capitalization of $200 billion and is ranked 2nd on CoinMarketCap.
On the technical front, Ethereum failed to break above the major resistance level of $1,710 and dropped sharply to trade at around $1,635, likely due to investors taking profits. Ethereum was in the overbought zone and has already completed a 50% Fibonacci retracement at the $1,635 level.
For now, failure to stay above this level could cause ETH prices to drop to $1,615, the 61.8% Fibonacci retracement level.
Both the RSI and MACD indicators are currently at levels of 54 and 0.90 respectively, suggesting that Ethereum is no longer in an overbought state, leading to potential bullish dominance. Moreover, the 50-day EMA is also indicating a potential uptrend in ETH’s price above the $1,620 mark.
Ethereum’s resistance levels are currently situated at $1,650 and $1,680. If these figures are surpassed, Ethereum may be exposed to a price of up to $1720.
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