Bitcoin and Ethereum are still under global pressure
Bitcoin chart analysis
The price of bitcoin continues to move in lateral consolidation in the range of $ 38,000 to $ 42,000. We are currently at $ 40,580 in a new search for support at the $ 40,000 psychological level. All moving averages are on the bullish side for now but within this consolidation. We need a price jump above $ 42,000, and such an impulse could increase bullish optimism and add new customers who would continue to increase the price. A very important zone for a longer-term bullish sequel is the zone around 45,000 dollars. For the bearish option, we need a price withdrawal below $ 40,000. We can then expect it to continue to the lower support zone at $ 38,000. The two-week minimum is $ 37,195. A larger support zone is on our lower trend line in the $ 35,000-36,000 zone.
Ethereum chart analysis
Ethereum’s price continues its positive consolidation above $ 2,775. Now we are gaining additional support from moving averages, and the price is slowly making a new turn for a possible more concrete break above $ 2,800. Our March target is at the $ 3,000 level, and the current consolidation is going in that direction. In February, a break above $ 3,000 would open up space around the $ 3,200 resistance zone. For the bearish option, we need a negative consolidation and a withdrawal below $ 2,700. The MA200 and MA50 then switch to the bearish side and increase the bearish pressure. The first below support is $ 2,600, and the next at the psychological is $ 2,500. The March low is at $ 2,444.
The immediate outlook for risky assets, including bitcoin, looks bleak as bond markets call into question the US Federal Reserve‘s ability to tighten monetary policy without pushing the economy into recession.
“We are still in a declining market. Rising prices in the bear market are extreme. Until we break the bottom line, it’s hard to say the bull market is around the corner, “Kevin Kang, founding director of BKCoin Capital LP, told CoinDescu in an e-mail, citing potential inversion of the yield curve, geopolitical tensions, including bitcoin.
The inversion of the treasury yield curve occurs when the 10-year yield falls below the two-year yield.
On Wednesday, the Fed increased borrowing costs by 25 basis points and indicated six additional increases in interest rates by the end of the year. The central bank has tried to calm market nerves by assuring that the economy is strong enough to absorb seven interest rate hikes. However, that did not help because the gap in the yield of 2 to 10 years fell below 19 basis points immediately after the statement of the Fed.
Speaking of network analytics, Ethereum’s daily exchange flow in the chain recorded an inflow of 620.4 million dollars. And an outflow of $ 651.5 million during the day estimates Netflow at $ -31.1 million. This is evident from the fourth quarter of the 4th year.
Network utilization is still around 51%. In contrast, the annual Ether premium for quarterly futures shows that the underlying digital asset indicator is recovering by 3%, levels below 3.5% signal a lack of interest from traders in ETH futures.
Nevertheless, Ethereum’s rapidly growing participation in deposit agreements justifies the network’s growing social sentiment. According to Lunar Crush, social feelings are rising during the week. As the social volume increased by 19.6%, social engagements increased by 47.6%. Social contributions increased by 8%, so bullish sentiments witnessed an increase of 18.2%. Returning to Ethereum’s share of deposit agreements, the numbers recorded the biggest increase in a single day on Tuesday. With over 200,000 ETH, it goes towards the Beacon chain. We recently came across an investment that exceeded the 10 million milestones. Confidence in ETH 2.0 has risen since the launch of the Kin testnet, CoinPedia reported.
Accordingly, Ethereum has experienced numerous whale accumulations. Big money investors have recently accumulated 20,000 ETH.