With the upcoming U.S. Consumer Confidence Report, the future of Bitcoin and Ethereum could potentially be impacted. On February 28th, both digital currencies were trading lower with Bitcoin slipping below $23,000 and Ethereum seemingly at a crossroads. With the increasing consumer confidence and the Federal Reserve likely to maintain its rate hike policy due to this expected increase, it is important to understand how these changes may affect the future of Bitcoin and Ethereum in terms of technical analysis. In this article, we will provide an in-depth look at the possible effects that the U.S. Consumer Confidence Report may have on Bitcoin and Ethereum, allowing you to make better informed decisions about your investments.
Bitcoin Uptrend Threatened as it Drops Below $23K
Bitcoin (BTC) fell for a second straight session on Tuesday, threatening a breakout below $23,000. The top-ranked cryptocurrency by market cap currently commands a market capitalization of $422 billion and is trading at $23,460 at the time of writing. During the trading session on Tuesday morning, Bitcoin dropped to a low of around $23,240 before recovering some losses. The move lower came after the world’s largest cryptocurrency hit an all-time high of over $24,200.
Monday saw bulls unable to jump back above the $24,000 mark, giving bears an opportunity to reenter the market. With this in mind, BTC seems set to remain rangebound until it breaks above or below a key resistance or support level. The 14-day Relative Strength Index (RSI) failed to break out of a resistance at 53.00. This could signal that buyers are running out of steam and that the recent rally may be coming to an end.
At the time of writing, the RSI is trading at 52.46, while Bitcoin is slightly higher than its earlier low. This indicates that there is still a lot of selling pressure in the market and that bulls have yet to regain control. It’s also worth noting that Bitcoin is still extremely overbought and could be due for a correction in the near term as buyers take profits off the table.
The US Consumer Confidence Report will be released later today and could provide more insight into how Bitcoin might react in the near term. If consumer confidence data comes in better-than-expected then this could provide some support for Bitcoin and potentially push it back to new highs. On the other hand, if the report disappoints then this could weigh on Bitcoin’s price and trigger more selling pressure from traders.
Bitcoin is currently trading at $23,46 and if it can break above the key psychological level of $24k then this could open up further gains towards $25K with strong buying interest being seen from institutional investors as well as retail investors. However, if we see selling pressure set in then this could pull Bitcoin back down towards its previous support levels around $21K and see further downward pressure placed on its price.
Ethereum Price at Crossroads
Ethereum (ETH) has been stuttering in recent days, with prices moving close to the $1,600 level. It attempted to move past a long-term resistance level of $1,675 but failed. Price strength has also hit a ceiling at the 53.00 mark. The bears have been strong and have kept the price from rising further. Markets are now waiting for today’s consumer confidence report to decide which direction to take.
If the report is promising and ETH bulls break the 53.00 ceiling on the RSI, price could be heading to or above $1,700. If that happens, it could provide more impetus for the bulls as they hope to breach and hold the price level past the $1,675 support level. It would also help Ethereum’s market capitalization move closer to becoming the first digital asset in the world to surpass $200 billion in value.
On the other hand, if the report is not promising and investors become wary of the impact it will have on ETH prices, then we could experience some downside pressure as traders attempt to dump their positions before any potential losses set in. In such a situation, there is a good chance that Ethereum’s price will fall below $1,600 with strong bearish sentiment driving it lower.
Given today’s uncertain economic conditions, it’s difficult to predict which direction Ethereum’s price may take post-report release. Nonetheless, investors should be aware that short-term dips should be expected regardless of the outcome of the report; in recent weeks Ethereum has been trading in a tight range and its full potential post-report will not be visible until several days after its release.
Ultimately, an improved consumer confidence report should come as good news for Ethereum and cryptocurrency markets in general—and could lift prices higher if buyers maintain their current levels of interest and become increasingly active in trading ahead of key technical resistance levels.
The US Consumer Confidence Report may present a significant threat to the current uptrend of Bitcoin and Ethereum prices. But, by analyzing the technical aspects of Bitcoin and Ethereum, investors can get an idea of the current market conditions and take suitable measures to protect their investments. With the right strategies and tactics, crypto investors can mitigate any risks associated with the US Consumer Confidence Report and successfully navigate the current price movements.