Bitcoin at the $20,000 threshold, Ethereum flirting with the $1,000 mark. What have the two crypto giants been playing in recent weeks? Are we headed for a bullish reversal or do we still fear a new fall? Answers in this article!
Bitcoin: Get out of $20,000 at every cost!
After hovering around $30,000 for a long time, Bitcoin price has been flirting with the 20,000 threshold for several weeks. In the first case, the range broke down. And at the $20,000 level, this scenario clearly cannot be ruled out.
If Bitcoin keeps the course of 20,000 dollars, it is clear that the mother of cryptocurrencies is struggling to move away from it at the top. And the possibility of another possible bullish reversal that does not come, could creating tension in the market. So a relapse is definitely not out of the question. If such a hypothesis were to come true, Bitcoin would be at risk of losing all its gains from the last bullrun at the end of 2020.
Proponents of the hypothesis regarding the continuation of the decline include 16,000 or even 12,000 dollars as the target level. A price level that would inevitably affect the altcoin market then. Two days ago, Bitcoin dropped below $19,000 again. At the time of writing, one BTC was trading at $20,826.
Ethereum: hold the 1,000 dollars!
If the $20,000 limit is important for Bitcoin, care will be taken to keep the $1,000 threshold on the Ether side. And again, the bearish spectrum is clearly not to be excluded. In case of a sustainable break below $1,000, Ethereum could arrive test of support 700 dollars. Price level not tested since December 2020.
For both assets, the hypothesis of “cancellation” of the effects of the last bull run cannot therefore be ruled out. Less than a month ago, Ethereum fell back below the $ 900 mark. At the time of writing, the price of Ethereum is crossing this $ 1,000 mark. The crypto prince is trading individually at $1,211.
Crypto-assets are a risky investment.
Inflation as a justice of the peace!
This week, the market awaited the publication of US inflation figures. If the estimates were based on inflation at an annual rate of 8.8%, the reality was even more cruel: 9.1%. Either the highest level observed in the Uncle Sam country since 1981. But above all continuity in the rise.
In the coming weeks and months, investors will obviously be keeping a close eye on the release of these figures. Whether across the Atlantic as on the old continent. Inflation should guide monetary policy decisions for many more months. And in this little game, investors hope that the rise in rates can be done as gradually as possible.
But the market, hovers still on the the ghost of the recession. If the latest employment figures from the US seem to give this theory a head start, the central banks will also make sure to avoid this situation.
Risks with the euro-dollar pair?
This has never happened since it was put into circulation in 2002. A few days ago, the USD/EUR pair reached the 1:1 parity.
Many analysts believe that there is a risk for the crypto market if the dollar continues to appreciate against the euro. In other words, if the dollar was worth more than the euro, the price of Bitcoin and the price of the main altcoins could unscrew.