The cryptocurrency market underwent a relief rally over the past week after positive Consumer Price Index (CPI) and inflation data. The impact of reducing inflation saw Bitcoin (BTC) and Ethereum (ETH) surge toward key levels despite the market’s volatility.
However, the rally was short-lived, with the two leading cryptocurrencies by market capitalization having reversed the gains.
At the same time, the selloff experienced by the two market leaders has also extended to altcoins that continue to tumble to new lows. Indeed, with both Bitcoin and Ethereum witnessing selling pressure, investors are monitoring the assets to see if the downward spiral may continue or if they can find triggers to push for a price breakout.
Bitcoin price analysis and prediction
By press time, Bitcoin was trading at $16,752, recording gains of less than 0.20% in the last 24 hours. Notably, on the weekly chart, Bitcoin topped 18,318 on December 14, which was last recorded at the start of November.
As things stand, Bitcoin’s current resistance is the $16,800 position, with the flagship cryptocurrency appearing to build on the minor momentum towards the level. Additionally, Bitcoin’s support stands at $16,700, which provides some stability considering BTC has no fundamental triggers to push for a price rally.
However, based on the analysis from Pricepredictions.com, Bitcoin is staring at an extended correction in the coming days. As per the prediction, Bitcoin will trade at $16,312 on December 26, or a drop of about 2.6% from the price at the time of publishing.
The price prediction is based on machine algorithms taking into account technical indicators like the relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA), average true range (ATR), and Bollinger Bands (BB).
Overall, Bitcoin’s possible triggers for a price rally will likely emerge from the general crypto market trajectory and influence from the bulls. At the same time, macroeconomic factors remain essential, especially if inflation slows further and the Federal Reserve loosens its monetary policy.
Ethereum price analysis and prediction
On the other hand, Ethereum is trading at $1,187 with minor gains of about 0.4% in the last 24 hours as the crypto failed to hold on to the gains inspired by the positive inflation news.
A review of the current price shows that Ethereum has failed to hold the $1,190 position as chances of significant recovery remains low. Notably, Ethereum has a resistance level of around $1,190 which means the asset might be facing further correction if it fails to breach the position. In the meantime, Ethereum could drop to $1,150 if the bears overpower the bulls and take charge.
At the same time, Ethereum price projection, as per the Pricepredictions.com analysis, indicates that bearish sentiments will likely plague ETH in the coming days. In that line, the platform predicts that ETH will trade at $1,153 on December 26.
Additionally, a summary of Ethereum technical analysis aligns with the ‘sell’ sentiment at 15, while moving averages are for a ‘strong sell’ at 13. Oscillators are for ‘buy’ at 4.
With the macroeconomic elements on the market losing momentum, Ethereum will be looking for possible triggers from other factors like the general market sentiment and network development. For instance, at the moment, the community is awaiting the start of staked ETH withdrawals slated for 2023.
Bitcoin and Ethereum dominance
Although both Bitcoin and Ethereum have undergone sell-offs, the two assets remain dominant, accounting for the largest share of the market cap. Bitcoin had a market share of 39.9% by press time, while Ethereum has reclaimed the 18% share.
In general, the market has no possible fundamental bullish triggers for a price break out as uncertainty continues to dominate, especially after the impact of the FTX cryptocurrency exchange collapse.
The market is also reeling from the uncertainty around the questions regarding Binance crypto exchange reserves and legal woes from the United States authorities. Indeed, the events’ outcome can lead to market panic.
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