Bitcoin (BTC) and Ethereal (ETH), the two largest cryptocurrencies in the world, continue to hold above the $24,000 and $1,600 marks, respectively. However, they experienced a slight dip this morning, with Bitcoin falling from $25,000 to $24,000.
The crypto market continues to fluctuate, investors are keeping an eye on the upcoming minutes of the Federal Open Market Committee (FOMC) meeting, due to be released this week.
The recent downward trend in cryptocurrency prices may be related to positive economic data coming out of the United States. This has strengthened the belief that the Federal Reserve will continue with its monetary policy tightening plan for a longer period than expected.
Furthermore, traders appear to be wary of making large investments ahead of the results release from Coinbase and Hong Kong's new VASP licensing scheme, as both are expected to have a significant market impact in the coming weeks. weeks.
How could the release of the FOMC meeting minutes on Wednesday affect cryptocurrency prices?
The release of the Federal Open Market Committee (FOMC) minutes on Wednesday could have an impact on the price of Bitcoin. As the FOMC sets monetary policy in the United States, any indication of a change in this policy could affect financial markets, including the cryptocurrency market.
In a recent speech at the Economic Club of Washington, Federal Reserve Chairman Jerome Powell discussed the ongoing disinflation process and expressed confidence in the Fed's ability to bring inflation down to its 2% target rate. .
While Powell's response to the strong January jobs report did not signal a change in the central bank's approach to future rate hikes, he did warn that sustained strong jobs data could lead to a terminal higher level of fed funds.
At its February 2023 meeting, the Federal Reserve raised the target range for the federal funds rate by 25 basis points, now from 4.5% to 4.75%. This is the second meeting in a row where the size of the increase has been reduced, even though borrowing costs are now at their highest since 2007.
Bitcoin traders and investors will closely watch the FOMC minutes for any indication of inflationary concerns or interest rate changes, which could affect the price of Bitcoin.
Exploring mild dips in the cryptocurrency market
The global cryptocurrency market has been performing well in recent days, but saw a slight decline in the most recent 24-hour period. At the time of writing, the total market value was $1.11 trillion, representing a 0.68 percent drop in value.
The market inactivity could be related to the fact that the United States is celebrating President's Day, which may make traders wary of making significant offers. As a result, Bitcoin has also seen a slight drop in value compared to the previous day.
Meanwhile, Ether also saw a drop in the last 24 hours, likely for the same reason. As a result, other well-known cryptocurrencies such as Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP) have also seen slight losses.
Can a strong US dollar undermine cryptocurrency? Analyzing the relationship between the USD and digital assets
The US dollar has been seeing significant gains and showing strength across the board, buoyed by positive US economic data that has pushed back predictions of an extended period of monetary policy tightening by the Federal Reserve.
The market anticipates that interest rates will have to rise due to recent statistics from the world's largest economy, which indicate a tight labor market, persistent inflation, strong growth in retail sales and rising monthly prices at producer.
Market forecasts indicate that the federal funds rate is expected to peak slightly below 5.3% in July. The US dollar has been strengthened by hawkish views from Fed members who believe higher interest rates will be needed to successfully combat inflation.
Therefore, the strength of the US dollar has been seen as a major factor contributing to the decline in the values โโof cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH).
bitcoin price
Looking at Bitcoin From a technical point of view, it has been trading sideways and holding a tight range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair is currently at $25,200, and if the price breaks above this level, it could go as far as the $26,000 mark.
However, the main technical indicators, including the RSI and MACD, show divergence. The RSI is currently above 50 in a buy zone, while the MACD is forming histograms below 0 in a sell zone. This type of divergence often indicates indecision among investors.
If the price of Bitcoin falls below the current support level of $23,750, the next support level would be $22,850, which is determined by the 50% Fibonacci retracement mark.
Next week, the focus will be on the FOMC meeting minutes, due to be released on Wednesday. These minutes could have a potential impact on Bitcoin price action.
ethereum price
The ETH/USD pair has seen a build in bullish momentum after finding support near the $1,650 level. On the 2-hour time frame, Ethereum has formed a symmetrical triangle pattern, which suggests indecision in the market and has kept the ETH price within a choppy range.
Yeah Ethereal experiences a bullish bounce above the $1650 level, it could potentially reach the $1720 mark. Additionally, a bullish break above the $1720 level and the symmetrical triangle pattern could prompt additional bullish price action. In either scenario, the $1760 and $1800 price levels are likely to act as resistance levels.
On the downside, Ethereum has support levels around $1,650 or $1,625. The RSI and MACD show divergence, which is comparable to Bitcoin price analysis.
This indicates that investors may be waiting for important news, such as the release of the FOMC meeting minutes, to determine the next market trends.
Bitcoin and Ethereum Alternatives
Besides Bitcoin (BTC) and Ethereum (ETH), there are several other altcoins on the cryptocurrency market that show significant potential. The CryptoNews Industry Talk team conducted an analysis and created 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 frequently 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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