In the world of cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) have experienced a relatively calm period, with both digital assets seeing a modest 0.5% movement in recent trading sessions. With such stable price action, market participants may be wondering if a breakout is just around the corner for these leading cryptocurrencies.
In this analysis, we’ll explore the factors that could contribute to potential price breakouts for both Bitcoin and Ethereum, as well as the key levels traders should keep an eye on.
BTC Network Achieves 75% Progress Towards Upcoming Block Reward Halving
The Bitcoin network recently reached the 75% milestone towards its next block reward halving, with just under 52,500 blocks left to be discovered before the event. This development marks another step in Bitcoin’s evolution as it approaches its maximum supply of 21 million coins.
To date, three halvings have occurred, and the next one is expected around April 22, 2024. After the halving, Bitcoin’s yearly inflation rate is projected to drop to 0.84%.
Currently, approximately 900 bitcoins are generated daily, valued at around $26,335,800. The Dash network will undergo a reward reduction in less than 53 days, while Litecoin (LTC) will experience a reward halving in about 95 days.
Ethereum (ETH) Sees a Rise in Sharks and Whales Amid Lower Prices
The number of “whales” and “sharks” trading Ethereum (ETH), according to data compiled by Santiment, has skyrocketed during the past year. On Friday, the business tweeted that the number of addresses holding 1,000 or more ETH had increased by 380, representing a 5.7% increase year over year.
Significant price shifts, often in a positive direction, have often preceded periods of extreme accumulation in the past. In addition, troughs in prices tend to correspond with this spurt of accumulation.
The current market conditions are likely responsible for increased ETH whales and sharks. Institutional investors and high-net-worth individuals can take advantage of the current cheap price of Ethereum, which is still 60% below its all-time high reached in May 2021).
This, in turn, may lead to upward pressure on the price, potentially driving it higher and attracting even more investors to the market.
Bitcoin Price
From a technical standpoint, Bitcoin encounters immediate resistance near the $30,000 level, which also serves as a psychological threshold. Conversely, robust support can be found around the $29,000 mark. A falling trendline intersects with Bitcoin’s upward trajectory in the two-hour timeframe.
This specific trendline poses considerable resistance close to the $29,600 level. However, critical technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both in the buy zone, reinforcing the likelihood of a continued bullish trend.
At the same time, the 50-day Exponential Moving Average (EMA) is situated around the $29,100 mark, implying a potential upward trend for Bitcoin.
Should Bitcoin manage to surpass the $30,000 resistance barrier, it could target the $30,400 or $30,800 resistance levels. Conversely, if BTC drops below the $29,100 mark, it may aim for the $28,800 or $28,200 levels.
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Ethereum Price
The current Ethereum price is $1,904, with a 24-hour trading volume of $4.6 billion. Ethereum has experienced a slight increase of less than 0.10% in the past 24 hours. It currently ranks #2 on CoinMarketCap, with a live market capitalization of $229 billion.
On Sunday, Ethereum, the second-leading cryptocurrency, is trading with a sideways bias, maintaining a narrow range between $1,875 and $1,965.
So far, ETH/USD has completed a 38.2% Fibonacci retracement at the $1,925 level. A bullish breakout above this level could potentially lead Ethereum’s price to the $2,055 mark. Further upward movement may expose Ethereum to a price of $2,120.
On the other hand, support continues to hold around $1,875.7, and a break below this level opens up further room for selling down to the $1,800 mark.
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Top 15 Cryptocurrencies to Watch in 2023
Keep abreast of the latest ICO projects and altcoins by consistently reviewing the expert-curated selection of the top 15 most promising cryptocurrencies to monitor in 2023, as recommended by industry professionals at Industry Talk and Cryptonews.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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