- Investors and short-term traders who are skeptical about the rise are keeping the price in a narrow range.
- If BTC loses $24,800, we could see a drop to $20,000.
- The critical level for ETH is $1,600 and closes below could target $1,550, $1,368.
The article discusses the current market conditions for Bitcoin and Ethereum, highlighting the potential for significant price movements in the near future.
Bitcoin (BTC) Market Analysis
Despite the ongoing bearish market, Bitcoin continues to trade below $26,000. The lack of investor appetite and the inability of positive news to attract market demand are contributing to the stagnant price. This stagnation has significantly reduced the number of active investors in 2023.
Before the SEC’s decision to delay the ETF, thousands of BTC were moved on exchanges. This pre-emptive move triggered a price drop, indicating that large investors are constantly looking for the right time to sell, thereby strengthening resistances and negatively affecting short-term performance.
However, JPMorgan analysts in a recent note suggested that the SEC would eventually approve several ETFs. Until then, the market discomfort will persist. Despite the short-term price movement of Bitcoin remaining unclear, Glassnode data reveals that over 40.53% of the supply has been inactive for three years or more. This long-term accumulation indicates a long-term belief in the rise of Bitcoin.
Currently, Bitcoin’s price is trading in a narrow range between $24,800 and $31,000. The price is close to support, and a significant movement may not occur until one of the lines is broken.
Ethereum (ETH) Market Analysis
Ethereum fell below the strong support of $1,626 at the beginning of the month. However, the long tail on the candlestick indicates robust buying at lower levels. Bulls are trying to salvage the situation, but they are struggling to initiate a recovery. This suggests a lack of demand at higher levels. For months, short-term traders have been seeing support as a buying opportunity and resistance as a selling opportunity, resulting in weak medium-term entries and price consolidation in a narrow range.
If sellers pull the price below $1,600, $1,550 and $1,368 could be targeted. Conversely, a break above the 20-day EMA ($1,684) could lead to a rise to $1,750.
Conclusion
Investors should be aware that the information in this article does not constitute investment advice. Cryptocurrencies carry high volatility and thus risk. Investors should conduct their own research and make transactions accordingly.
