Bitcoin and Ethereum Price Prediction: Is Regulation Backlash Selloff Overdone?
Bitcoin, the world’s largest cryptocurrency, fell 5% to $21,800 on Friday, continuing its downward trend. In the meantime, Ethereum was down 4.93% and trading near $1,544.48. However, many factors could be responsible for its prolonged decline.
Everything has had a negative impact on cryptocurrencies, whether it is the increased threat of hacking in the crypto industry or the most recent concern that the United States may restrict crypto staking.
https://www.twitter.com/foxianorg/status/1623648542782025729?s=20&t=x87Qswcpr9sZ_nQnxSGE6QBearish Crypto Market
The global cryptocurrency market has continued to fall, dropping more than 3% on the day as new regulatory concerns frightened investors around the world. The drop in cryptocurrency prices was precipitated by reports that the United States would outlaw cryptocurrency staking.
Last night, Coinbase CEO Brian Armstrong stated that restricting crypto staking would be a “bad route” for the US.
Crypto Market Bearish 🎯#Bitcoin
— Muhammad Uzair (@Crypto_By_Uzair) February 10, 2023
As a result of the latest developments at Kraken and the SEC, BTC has fallen below $22,000, and Ethereum has lost its key support level of $1,600.
Despite the market excitement generated by Kraken’s recent launch of staking and settlement services in Asia, the company’s activities in the US have been hampered by the SEC’s lawsuit against it for alleged breaches in its crypto staking services. This incident has also contributed to the current crypto market decline.
JUST IN: #Crypto exchange Kraken shuts down staking following SEC charges.
— Watcher.Guru (@WatcherGuru) February 9, 2023
Furthermore, North Korean scammers have been hacking cryptocurrency exchanges and stealing digital currency through phishing. Although these attacks have been occurring for some time, they have recently become more frequent. This was cited as one of the primary reasons for the decline in investor confidence and bitcoin losses.
US SEC Will Keep an Eye on Crypto Exchanges
On the plus side, the US Securities and Exchange Commission (SEC) has committed to begin monitoring cryptocurrency advisers and brokers to ensure they meet their respective standards while providing financial recommendations, referrals, and counsel to their clients.
The agency’s head of examinations, Richard Best, emphasized the company’s commitment to ensuring that investment advisors follow regulations. This, according to the director, will protect the money of investors.
As a result, the entire bitcoin industry will view this strategy favorably because it will allow for an examination of brokers’ and advisers’ compliance, transparency, and risk management strategies.
US SEC Announces Plans to Monitor Crypto Brokers and Advisors By DailyCoin https://t.co/YdemXKJBcw pic.twitter.com/EXvdVyDCCX
— BitcoinAgile (@bitcoinagile) February 8, 2023
As a result, this was regarded as yet another important feature that could benefit the cryptocurrency industry by reducing hacking events and protecting investor funds.
What Does A Flat US Dollar Mean For The Global Economy?
The broad-based US dollar was on the defensive on Friday after falling overnight, as investors remained cautious ahead of next week’s US inflation data, with concerns about an economic slowdown and the rate at which the Federal Reserve raises interest rates dampening sentiment.
The dollar index, which compares the US dollar to six major counterparts, was at 103.21, up from 102.63 the previous session.
Dollar flat after Fed official comments; focus on CPI data next week https://t.co/fClOQtqyyH pic.twitter.com/HePlHxn4Te
— Reuters (@Reuters) February 9, 2023
According to data released on Thursday, more Americans filed new unemployment insurance claims than expected last week, though the number of claims remained at levels consistent with a tight labor market.
#NEW Weekly jobless claims rise more than expected in early February@USDOL reports 196k Americans filed initial unemployment claims last week, up by 13k from the previous week and higher than 190k expected
— Greta Wall (@GretaLWall) February 9, 2023
Continuing claims rose by 38k to 1.69 million in the week ending Jan 28
Risky currencies, such as Bitcoin, had the worst performances on Friday. The outlook for risky currencies will almost certainly be influenced by the anticipated US recession.
Bitcoin Price
Bitcoin is currently worth $21,905, and the 24-hour trading volume is $31 billion. In the last 24 hours, Bitcoin has dropped nearly 4.5%. CoinMarketCap currently ranks first with a live market cap of $422 billion.
Technically, BTC/USD trading is extremely bearish, currently trading at $21,900, it has recently completed a 61.8% Fibonacci retracement at this level, implying that the price could drop to $20,000 in the near future. The resistance for Bitcoin is expected to remain near its average of $22,300 or $22,775.
Leading technical indicators such as the Relative Strength Index and Moving Average Convergence Divergence both indicate a bearish market. Both the RSI and the MACD have reached the 25 levels and are producing histograms below zero, indicating that there is strong selling pressure.
Furthermore, a bearish engulfing candle indicates that investors are extremely bearish. If Bitcoin breaks below $21,800, we expect its next support level would be around $21,400. Support levels are expected to remain close to keeping Bitcoin’s price down.
Ethereum Price
The current price of Ethereum is $1,550, with a 24-hour trading volume of $9.8 billion. In the last 24 hours, Ethereum has dropped over 5%. CoinMarketCap currently ranks #2, with a live market cap of $189 billion.
The ETH/USD pair has broken through a symmetrical triangle pattern that had been extending resistance at $1,675, sending the ETH price down to $1,525. This level is currently acting as a support, and a close above these candles may result in a bullish bounce-off today.
On the plus side, Ethereum’s immediate resistance level remains at $1,600 or $1,650. Alternatively, a break below $1,520 may send the price of ETH toward the 1,475 area.
A break below $1,620, on the other hand, could expose BTC to levels as low as $1,550.
Bitcoin and Ethereum Alternatives
CryptoNews Industry Talk recently identified the top 15 cryptocurrencies for 2023. There are numerous other options to consider if you want to invest in something more promising.
The number of cryptocurrencies and ICOs (Initial Coin Offerings) available grows on a weekly basis.
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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