The cryptocurrency market experienced a relief rally last week after the positive Consumer Price Index (CPI) and inflation data. The effect of lowering inflation has seen Bitcoin (BTC) and Ethereum (ETH) soar to significant levels despite market volatility.
Bitcoin and Ethereum price action prediction!
However, the rally was short-lived and the two leading cryptocurrencies by market cap reversed gains.
At the same time, the sell-off experienced by the two market leaders has also spread to altcoins that continue to drop to new lows. Indeed, as both Bitcoin and Ethereum witness selling pressure, investors are watching assets to see if the bearish spiral continues or if they can find triggers for a price breakout.
Right now, inflation data and slowing interest rate hikes aren’t helping the two leading cryptocurrencies as both bears and bulls battle for market control.
Bitcoin price analysis and forecast
At press time, Bitcoin was trading at $16,752 and had gained less than 0.20% in the last 24 hours. On the weekly chart, Bitcoin hit 18,318 on December 14, last recorded at the beginning of November.
Bitcoin seven-day price chart. Source: Finbold
Currently, Bitcoin’s current resistance is the $16,800 position and the flagship cryptocurrency seems to be gaining a minor momentum towards the level. Additionally, Bitcoin’s support is located at $16,700, which provides some stability given that BTC has no key triggers for a price rally.
However, according to analysis by Pricepredictions.com, Bitcoin expects a long correction in the coming days. According to the forecast, Bitcoin will trade at $16,312 on December 26, or about 2.6% from its price at the time of publication.
Price prediction is based on machine algorithms that take into account technical indicators such as the relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA), average true range (ATR), and Bollinger Bands (BB).
Bitcoin seven-day price forecast. Source: Pricepredictions.com
Overall, Bitcoin’s possible triggers for a price rally will come from the overall crypto market trajectory and the influence of bulls. At the same time, macroeconomic factors remain important, especially if inflation slows further and the Federal Reserve eases monetary policy.
Ethereum price analysis and forecast
On the other hand, Ethereum is trading at $1,187 with small gains of around 0.4% in the last 24 hours as it failed to maintain its gains inspired by the news of crypto-positive inflation.
Ethereum seven-day price chart. Source: Finbold
A review of the current price shows that Ethereum has failed to hold the $1,190 position as the chances of a significant recovery remain low. Specifically, Ethereum has a resistance level of around $1,190, which means that if the asset fails to break the position, it could face further corrections. Meanwhile, Ethereum could drop to $1,150 if the bears defeat the bulls and take control.
At the same time, the Ethereum price prediction according to Pricepredictions.com analysis shows that the bearish trend will disturb ETH in the coming days. Accordingly, the platform predicts that ETH will be traded at $1,153 on December 26.
Ethereum seven-day price forecast. Source: Pricepredictions.com
Bitcoin and Ethereum dominance
Although both Bitcoin and Ethereum have gone through the sell-off, the two assets continue to dominate and account for the largest share of market cap. Bitcoin has a 39.9% market share according to the press, while Ethereum reclaimed 18%.
Overall, there are no possible fundamental bullish triggers for a price boom in the market as uncertainty continues to prevail, especially after the impact of the FTX cryptocurrency exchange crash.
The market is also affected by the uncertainty of questions regarding Binance cryptocurrency exchange reserves and legal woes from the US authorities. Indeed, the outcome of events can cause panic in the market.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.