Bitcoin and Ethereum Price Prediction as BTC Dips Below $40,000 and ETH Struggles to Hold $2,200

Arslan Butt
Last updated: | 3 min read

Bitcoin, the foremost digital currency, witnessed a notable dip below the critical $40,000 mark, briefly falling to around $39,500. This decline has been linked to substantial Bitcoin sales, notably influenced by the Grayscale GBTC Bitcoin ETF, fueling concerns about a possible further descent to the $38,000 level.

Concurrently, Ethereum, another major player in the crypto arena, is grappling with its own bearish momentum, having fallen to $2,347, marking a significant 24-hour drop of nearly 3%.

These movements come amidst a broader market context where Bitcoin has seen over a 20% decline since the launch of the first exchange-traded funds (ETFs) by major firms like BlackRock and Fidelity.

This decline, from a high of $49,021 on the ETFs’ debut to a current standing of $38,975, reflects a complex interplay of factors including market sentiment, institutional actions, and broader macroeconomic conditions.

Bitcoin’s Price Decline: Miner Stress and Institutional Dynamics

Bitcoin (BTC) recently experienced a notable downturn, slipping below the $40,000 support and sparking market concerns. This correction not only rattled holders but also posed challenges for BTC miners.

Over the past 24 hours, miners faced financial struggles with transaction fees hitting their lowest since June 2022. The pressure on miners may lead to selling, adding downward momentum to Bitcoin’s price.

In the brighter side, institutional players are strategically accumulating BTC, reflecting confidence in its long-term value. However, this could impact short-term market dynamics and potentially concentrate BTC ownership.

Changes in address numbers and the long/short ratio hint at evolving market sentiment, while increased network activity offers stability.

Consequently, this news of Bitcoin’s dip below $40,000 pressures miners with low transaction fees, potentially deepening the price decline amid institutional accumulation.

Google Bard’s Forecast: Bitcoin’s Potential Slide to $35,000 in Current Market

Insights from Google’s AI, Google Bard, suggest Bitcoin could further decline to $35,000, influenced by inflation, interest rates, and regulatory factors.

However, potential uplifts from block reward halving, rising demand, institutional adoption, and positive developments may facilitate recovery.

With Bitcoin’s current position just under $39,000, Google Bard indicates a possible stagnation with prices oscillating between $35,000 and $45,000 as market forces collide.

Amidst these fluctuations, investors are advised to proceed with caution.

Bitcoin Price Prediction

In the current technical analysis of Bitcoin, the cryptocurrency is teetering around a pivot point at $39,850, signifying a potential tipping point for future price movements. A discernible downward wedge pattern threatens to exacerbate selling pressure should the price slip below this level.

Resistance levels await at $40,850, $41,381, and $43,394, which could temporarily halt bearish advances and provide grounds for a corrective rally.

Conversely, Bitcoin faces immediate support at $38,618, followed by more substantial levels at $37,638 and $36,745. These thresholds may cushion further drops.

Bitcoin Price Chart - Source: Tradingview
Bitcoin Price Chart – Source: Tradingview

The RSI, languishing in the oversold territory, suggests the possibility of an impending bullish correction, potentially up to the first or second resistance in the short term.

However, this anticipated relief rally could be short-lived if the prevailing downtrend persists, pushing prices to test lower supports once again.

Ethereum Price Prediction

Ethereum’s current price action shows it hovering near a pivot point at $2,250.1, with potential resistance levels at $2,360.1, $2,426.7, and $2,475.3, indicating where upward momentum may face hurdles.

Supports are observed at $2,168.9, $2,105.5, and $2,026.9, which may provide a safety net against further declines.

Ethereum Price Chart - Source: Tradingview
Ethereum Price Chart – Source: Tradingview

The 50 EMA at $2,415.7 suggests a recent crossover below this average, adding to bearish signals. However, with the RSI lingering around 26, indicating oversold conditions, a corrective rebound might be on the horizon, possibly retesting the pivot point before any decisive move.

Investors are closely watching these levels, as breaks or bounces could signal Ethereum’s next directional phase.

Top 15 Cryptocurrencies to Watch in 2023

Stay up-to-date with the world of digital assets by exploring our handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to keep an eye on in 2023. Our list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments.

Take advantage of this opportunity to discover the potential of these digital assets and keep yourself informed.

Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication – cryptocurrencies are highly volatile investments with considerable risk, always do your own research.