Bitcoin, the world’s largest cryptocurrency, has failed to maintain its upward momentum and has fallen below $24,000 in the last 24 hours, dropping from its peak of $25,100 due to a significant reversal in the cryptocurrency market. Following Bitcoin’s lead, Ethereum has also seen a gradual decline in the past 24 hours.
As the cryptocurrency market continues to experience volatility, all eyes are on the Federal Open Market Committee (FOMC) meeting minutes scheduled to be released today. The outcome of this event is expected to have a significant impact on the market, particularly on Bitcoin and Ethereum prices.
Cryptocurrency Market Analysis: A Fundamental Outlook
The downward trend in the cryptocurrency market can be mainly attributed to the upcoming release of preliminary GDP data and PCE figures from the United States, which are expected to increase market volatility.
In addition, the upcoming release of the Federal Reserve’s February meeting minutes is viewed as another factor causing investors to hesitate and contributing to Bitcoin’s losses. The central bank is expected to deliver a hawkish stance in the Fed minutes, which is keeping cryptocurrency gains in check.
Moreover, the previously released higher-than-expected US PMI has given the Fed additional economic headroom to hike interest rates, adding to the cautious sentiment in the crypto market.
Risk-Off Wave in the Crypto Market: Eyes on Key US Data
Despite the emergence of several positive regulations for the cryptocurrency market, the global cryptocurrency market has failed to sustain its upward trend and has turned negative for the day. This is likely due to cautious investor sentiment ahead of the Federal Reserve’s February meeting minutes, as investors await more clarity on US interest rates and the path of monetary policy.
In addition, the upcoming release of the Personal Consumption Expenditures Index is also expected to increase market volatility.
It’s worth noting that the Federal Reserve’s February meeting minutes, which are set to be released later today, are widely expected to echo the central bank’s hawkish tone.
This means that the rising interest rates will limit liquidity, which is not good for cryptocurrencies. Higher yields typically lead investors to withdraw their money from riskier investments.
This week, all eyes are also on Thursday’s report of the Personal Consumption Expenditures Price Index, which is expected to reveal that inflation remained strong in January. This may provide further justification for the Fed to continue raising interest rates.
New economic data released on Tuesday showed that US PMIs for February was better than expected, providing the Federal Reserve with more economic headroom to raise interest rates as it has indicated it wants to do soon.
New York State Department of Financial Services Enhances Capacity to Monitor Virtual Currency
The New York State Department of Financial Services (NYDFS) has announced that it has enhanced its ability to detect illicit activity related to virtual currency within the entities it regulates. The agency stated that these upgrades are a part of its ongoing efforts to remain competitive in the industry and be proactive in addressing issues related to virtual currencies.
The recent improvements made by the New York State Department of Financial Services (NYDFS) to detect unlawful activity involving virtual currency among the organizations it supervises are seen as a positive development for the cryptocurrency market.
The NYDFS is proactively taking steps to stay competitive and keep up with the evolving landscape of virtual currencies. The department recently announced additional capabilities to detect potential insider trading, market manipulation, and front-running activity associated with Department-regulated entities’ and applicants’ exposure or potential exposure to listed virtual currency wallet addresses.
This move is expected to aid in the expansion of cryptocurrencies. The NYDFS made the announcement on February 21 but did not provide any details about the “new insider trading and market manipulation risk monitoring tools.”
Let’s examine the technical aspect of the market.
Bitcoin Price
Looking at the technical analysis of BTC/USD, the pair has broken a crucial support level of $24,500 and has begun to decline toward $23,900. However, the double bottom pattern has transformed this level into a significant support level for Bitcoin.
In the 2-hour timeframe, an ascending triangle pattern has formed with an upward trendline providing support near $24,000. If Bitcoin falls below this level, the next support level will be around $23,400. The RSI and MACD indicators are in the selling zone, which is adding selling pressure to Bitcoin.
Bitcoin’s immediate resistance is at $24,500, and a rise in buying pressure could lead to a breakout above this level, exposing BTC to the next resistance level at $25,200.
Investors are keeping a close eye on the FOMC meeting minutes, which will be released today at 7:00 PM (GMT). This event is expected to impact future trends in the financial markets, making it crucial to remain focused.
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Ethereum Price
The ETH/USD pair has broken below its choppy range of $1,675 to $1,725 and is currently showing a downward trend. Ethereum’s next support level is expected to be around the 38.2% Fibonacci retracement level of $1,630.
If the downward momentum continues and there is a bearish breakout below the 38.2% Fibonacci retracement level, the downtrend could extend toward the $1,600 or $1,565 levels.
If the ETH/USD pair can maintain above the $1,630 level, it may lead to a potential price rebound toward the $1,675 or $1,740 level.
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Bitcoin and Ethereum Alternatives
Apart from Bitcoin (BTC) and Ethereum (ETH), there are many other altcoins in the cryptocurrency market that are worth watching. To help investors stay up-to-date, the CryptoNews Industry Talk team has conducted an analysis and compiled a list of the top 15 cryptocurrencies to keep an eye on in 2023.
This list is regularly updated with new altcoins and ICO projects, so it is recommended to check back often for the latest additions.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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