Simon Ng As the US consumer confidence index slipped last month, the prices of Bitcoin and Ethereum saw a rebound. On March 1, Bitcoin surged by over 6%, breaking through $50K for the first time since Feb 22. Ethereum, on the other hand, rose above $1.650, gaining more than 4%. But can Ethereum rebound from recent declines and reach new all-time highs? In this article, we’ll look at how BTC & ETH’s technical analysis can reveal insights about the US consumer confidence decline.
Bitcoin Price Surges
On Wednesday, Bitcoin (BTC) rebounded following the latest US consumer confidence report, which showed that confidence fell to 102.9 in February. This drove BTC/USD prices up to an intraday peak of $23,880.63, pushing Bitcoin past a long-term resistance level at $23,800. According to technical analysis, this price surge indicates that Bitcoin is entering a new phase of bullish momentum.
The 14-day relative strength index (RSI) reflects this sentiment, having climbed beyond a ceiling at 54.00 and currently tracking at 55.02. As it stands, the next visible resistance zone is located at the 60.00 level. Furthermore, the 50-day moving average also supports this bullish pattern and is currently trending above the longer-term 200-day valuation indicator. With both short and long-term trends pointing upwards for Bitcoin, it could be an opportune time for investors to capitalize on these potential gains.
It’s important to note that while cryptocurrencies have been less susceptible than traditional markets to larger economic turmoil such as the consumer confidence decline seen within the US economy in recent months, they still remain volatile and unpredictable instruments. Therefore, it’s essential to consider other external factors before investing in digital currencies like Bitcoin or Ethereum.
Can Ethereum Rebound from Recent Declines and Reach New All-Time Highs?
Ethereum (ETH) prices moved back above $1,650 early today, which has brought ETH back to its strongest point since last Thursday. The 10-day (red) moving average is being challenged by the 25-day (blue) moving average; if a crossover should occur, Ethereum could drop towards a floor at the $1,550 mark. For investors who are interested in further insights into the possible movements of Etheruem prices in the coming weeks, a weekly price analysis is available to subscribers via email.
However, if the 25-day (blue) moving average holds off this challenge, it will likely push Ethereum prices to new highs. This means that ETH may reach levels not seen since early May when it hit $2,040. While there can be no certainty of Ethereum taking such an optimistic course in the near future, current technical analysis could be seen as evidence of greater gains ahead for ETH holders.
On the other hand, if Ethereum does indeed dip towards $1,550 in price then this could be interpreted as a signal that traders and investors have begun to lose faith in ETH’s ability to rebound from recent declines. This could lead to further price drops and a notable decrease in confidence in the cryptocurrency market as a whole.
However, all is not lost for Ethereum holders, as it still remains well above its all-time low price point of around $400 from early April. As such, if Ethereum was able to recover from its current position and reach new highs then this would provide a much needed boost to investor confidence (especially after the US consumer confidence decline), and prove that cryptocurrencies can still remain resilient even against bearish conditions.
Ultimately, only time will tell what happens with the price of Ethereum and whether or not it will rally or drop towards the $1,550 mark. Those who are interested in getting full access to all the key technical analysis regarding Ethereum should sign up for our weekly email updates which provides comprehensive information and analysis on Ethereum’s price movements and trends.
The recent surge in the price of Bitcoin and the recent decline in the US consumer confidence are factors that have a direct impact on the crypto markets. By studying the technical analysis of Bitcoin and Ethereum, we can get a much better understanding of the implications of this decline and the potential for a rebound in the near future. By taking into account the fundamental factors, as well as the technical analysis, we can gain insights that will help us make better investment decisions and gain a better understanding of the current state of the cryptocurrency market.
