Bitcoin, the world's largest cryptocurrency, has failed to sustain its bullish momentum and has fallen below $24,000 in the past 24 hours, falling from its high of $25,100 due to a significant reversal in the cryptocurrency market. Following the example of Bitcoin, Ethereal it has also seen a gradual decline in the last 24 hours.
As the cryptocurrency market continues to experience volatility, all eyes are on the Federal Open Market Committee (FOMC) meeting minutes due 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 Perspective
The downward trend in the cryptocurrency market can be mainly attributed to the upcoming release of preliminary GDP data and PCE figures for the United States, which are expected to increase market volatility.
Furthermore, the upcoming release of the Federal Reserve's February meeting minutes is seen as another factor making investors hesitant and contributing to Bitcoin's losses. The central bank is expected to take a hawkish stance in the Fed minutes, keeping cryptocurrency gains in check.
Additionally, the higher-than-expected US PMI released earlier has given the Fed additional economic leeway to raise interest rates, adding to the cautious sentiment in the crypto market.
Wave of Risk Aversion in the Crypto Market: Eyes on Key US Data
Despite the emergence of various positive regulations for the cryptocurrency market, the global cryptocurrency market has not been able to maintain its bullish 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 direction 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, due to be released later today, are expected to echo the central bank's aggressive tone.
This means that rising interest rates will limit liquidity, which is not good for cryptocurrencies. Higher returns often lead investors to withdraw their money from riskier investments.
This week, all eyes are also on Thursday's Personal Consumption Expenditure Price Index report, which is expected to show that inflation remained strong in January. This may provide additional justification for the Fed to continue raising interest rates.
New economic data released on Tuesday showed that the US PMIs for February came in better than expected, giving the Federal Reserve more economic leeway to raise interest rates, as it has indicated it wants to do soon.
New York State Department of Financial Services Enhances Ability to Monitor Virtual Currency
The New York State Department of Financial Services (NYDFS) has Announced which has improved its ability to detect illegal activities related to virtual currency within the entities it regulates. The agency stated that these updates are part of its ongoing efforts to remain competitive in the industry and be proactive in addressing issues related to virtual currencies.
Recent improvements made by the New York State Department of Financial Services (NYDFS) to detect illegal activities involving virtual currency among the organizations it oversees 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 virtual currency landscape. The Department recently announced additional capabilities to detect potential insider trading, market manipulation, and front-end activity associated with the exposure or potential exposure of Department-regulated entities and applicants to listed virtual currency wallet addresses.
This move is expected to help in the expansion of cryptocurrencies. The NYDFS made the announcement on February 21, but did not provide any details about the "new risk monitoring tools for insider trading and market manipulation."
Let's examine the technical side of the market.
bitcoin price
Looking at the technical analysis of USD/BTCthe pair has broken a crucial support level of $24,500 and has started to decline towards $23,900. However, the double bottom pattern has transformed this level into a significant support level for Bitcoin.
On the 2-hour time frame, an ascending triangle pattern has formed with a rising trend line providing support near $24,000. If Bitcoin falls below this level, the next support level will be around $23,400. Both the RSI and MACD indicators are in the sell zone, adding selling pressure to Bitcoin.
Bitcoin's immediate resistance is at $24,500, and an increase in buying pressure could lead to a break above this level, exposing BTC to the next resistance level at $25,200.
Investors are closely watching the FOMC meeting minutes, which will be released today at 19:00 (GMT). This event is expected to affect future trends in the financial markets, so it is crucial to stay focused.
ethereum price
He EUR/USD the pair has broken below its swinging range of $1,675 to $1,725 โโand is currently trending lower. Ethereum's next support level is expected to be around the 38.2% Fibonacci retracement level of $1,630.
If the bearish momentum continues and there is a break below the 38.2% Fibonacci retracement level, the downtrend could extend towards the $1600 or $1565 levels.
If the ETH/USD pair can sustain above the $1630 level, it may lead to a possible price bounce towards the $1675 or $1740 level.
Bitcoin and Ethereum Alternatives
Aside from Bitcoin (BTC) and Ethereum (ETH), there are many other altcoins on the cryptocurrency market that are worth checking out. To help investors stay up to date, the CryptoNews Industry Talk team conducted an analysis and compiled a list of the top 15 cryptocurrencies to watch in 2023.
This list is regularly updated with new altcoins and ICO projects, so check back often for the latest additions.
Disclaimer: The Industry Talk section presents information from crypto industry players and is not part of the editorial content of Cryptonews.com.
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