Bitcoin And Ethereum Prices Struggle To Hold Momentum! Analyst Maps Potential Breakout Levels

The post Bitcoin And Ethereum Prices Struggle To Hold Momentum! Analyst Maps Potential Breakout Levels appeared first on Coinpedia Fintech News

As Bitcoin’s price trend is significantly controlling the 2023’s Q1 bull run, investors are worried about future trends as BTC is not showing any sign of promising momentum ahead. Despite a bullish start to the new year, Bitcoin and Ethereum prices are facing challenges to trade up to investors’ expectations as macroeconomic factors strengthen bears’ domination. However, several analysts believe that the recent struggles of BTC and ETH prices are a temporary setback, and the prices will surely rebound as investor confidence returns. 

Can Traders Expect A Bounce Back In BTC And ETH Prices?

Bitcoin and Ethereum prices have been hovering around a critical price zone for the last two weeks, trapping bulls with a severe uncertain sentiment. In recent days, Bitcoin bulls have shown weakness in pulling BTC price above its prolonged consolidated level, creating concern about a sudden bearish reversal.

Bitcoin Price Analysis

Despite the sideways trend in the BTC price chart, the asset is still under the radar of an institutional investment opportunity as CoinShares reported an institutional inflow of $117 million, hitting a 7-month high after being influenced by an astronomical surge in January. Moreover, the long-short and lending ratios trade in a stable region, hinting at bulls’ control. 

Trading View

As of writing, BTC’s price trades at $22,924 with a minor rejection from its immediate resistance level. Analyzing the daily price chart, BTC price tumbles near the $23K level, and a breakout below its immediate support level of $22.7K may intensify short-term downward retracement to $21.5K near the EMA-200.

Moreover, the SMA-14 forms a bearish divergence with the current price trend, which may begin a downward rally this week. However, a rebound from $21K is expected to fulfill the golden cross formation, pushing the BTC price to a critical resistance level of $25K. 

Ethereum Price Analysis

Ethereum’s price has sparked a bullish comeback after retesting its support level at $1.6K. As payment giant Visa announced stablecoin settlements on the Ethereum blockchain, it brought back expectations on a short-term bullish goal of $2K. 

Trading View

According to CoinMarketCap, ETH’s price trades at $1,638 and is paving its way to trade above the crucial level of $1,665. A well-known crypto trader, TradingShot, predicts that the Ethereum price is bound to trade higher as the EMA-50 attempts to break the EMA-200 trend line, forming a golden cross in the daily price chart. A breakout above its current consolidation range may send ETH price to test its resistance at $1,790, and a trend continuation may form a resistance near the $2K mark. 

If the ETH price retraces downward and trades below the 23.6% Fib level, it may drop to $1.5K and a bounce back from this level may develop a bullish reversal.