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The cryptocurrency market has been experiencing a roller coaster ride lately, with Bitcoin and Ethereum being no exception. As the world continues to react to the latest Nonfarm Payrolls (NFP) report, both coins have extended their declines, leaving investors wondering what’s next for these digital assets. In this blog post, we’ll take a closer look at the technical analysis of Bitcoin and Ethereum, exploring key support and resistance levels while discussing whether they will continue on their bearish trend or start to rebound soon. So buckle up, and let’s dive into it!
BTC falls after NFP
The latest Nonfarm Payrolls (NFP) report, a key economic indicator measuring the number of jobs added or lost in the US economy each month, has significantly impacted Bitcoin’s price. BTC fell sharply after the release of the NFP report, losing over $1,000 in just a few hours.
This drop was mainly due to concerns about inflation and rising interest rates. Many investors worry that a strong job market will lead to higher wages and increased demand for goods and services, which could ultimately drive up prices and trigger inflation.
As a result, some investors are turning to traditional safe-haven assets like gold instead of Bitcoin. However, others believe that Bitcoin’s long-term potential as an alternative store of value makes it worth holding onto despite short-term fluctuations.
While the NFP report may have caused some turbulence in Bitcoin’s price action recently, many experts believe this digital asset still has room for growth and should be viewed as a long-term investment opportunity rather than just another speculative asset.
Ethereum was also down on the day
Ethereum, the second-largest cryptocurrency by market capitalization, also experienced a drop in price following the release of nonfarm payroll data. The coin dropped over 5% during the day to trade at around $2,700.
This decline came as no surprise given that Ethereum has been trading in a bearish trend for several weeks now. In fact, its price had already taken a hit earlier this week after Elon Musk announced that Tesla would be suspending Bitcoin payments due to concerns about its environmental impact.
Moreover, Ethereum’s decline was exacerbated by reports of miners selling off their holdings amid China’s crackdown on crypto mining and trading activities.
Despite these setbacks, Ethereum still remains one of the most promising cryptocurrencies with numerous use cases beyond just being a store of value. Its underlying blockchain technology is powering various decentralized applications (dApps) and smart contracts across industries such as finance, gaming and real estate.
However, like Bitcoin and other cryptocurrencies in the market today, Ethereum’s price movements remain highly volatile and subject to various factors such as regulatory actions and investor sentiments.
Both coins still in bearish trend
Bitcoin and Ethereum have both been in a bearish trend for the past few weeks. Bitcoin’s decline has been more significant with its price dropping below $45,000, while Ethereum’s price is still hovering around the $3,000 level.
The recent US nonfarm payrolls report seems to have had an impact on the crypto market as well. The disappointing jobs data raised concerns about the pace of economic recovery and led to a sell-off in riskier assets like stocks and cryptocurrencies.
Bitcoin’s technical indicators are currently showing signs of weakness as it trades below its 50-day moving average. Its MACD indicator is also trending downwards indicating a further downside potential. Similarly, Ethereum’s technical analysis points towards negative momentum with its RSI indicator in oversold territory.
However, despite these bearish signals, some analysts remain optimistic about the long-term prospects of both coins. They argue that Bitcoin and Ethereum are still very much in their nascent stages and will continue to gain adoption over time.
Although Bitcoin and Ethereum are currently experiencing downward pressure due to short-term market factors such as NFP data release or China cryptocurrency crackdowns they may potentially rebound if there’s positive news surrounding institutional investors’ interests or central bank digital currencies development initiatives.
Key support and resistance levels
Understanding key support and resistance levels is crucial for any trader in the cryptocurrency market. These levels indicate points where the price of an asset may experience a significant bounce or rejection.
For Bitcoin, the current key support level sits at around $46,000. If BTC falls below this level, it could see further downside towards $42,000 or even lower. On the other hand, if BTC manages to hold above this level and break through the resistance near $50,000, we may see a bullish reversal.
As for Ethereum’s key levels, its support currently lies at around $3,200. Similar to BTC, ETH could see further downside if it fails to hold above this level. However, breaking through the resistance near $3,600 could signal a bullish trend reversal for ETH.
It’s important to note that these are not definitive predictions but rather potential areas where price action may occur. Traders should always use additional indicators and analysis before making any decisions based solely on these levels.
Knowing key support and resistance levels can help traders make informed decisions about buying or selling cryptocurrencies like Bitcoin and Ethereum.
Conclusion
Both Bitcoin and Ethereum experienced a decline in prices following the release of the Nonfarm Payrolls data. This move has extended their bearish trends that have been observed over the past few weeks.
Traders and investors will be closely monitoring key support levels to see if there is any potential for a rebound. However, with market sentiment still weak and uncertainty surrounding global events such as inflation concerns and regulatory crackdowns, it remains to be seen whether we will witness an upward trend anytime soon.
As always, it’s important for traders to exercise caution when entering or exiting positions in these volatile markets. By keeping track of technical analysis indicators like support and resistance levels on charts across different timeframes, traders can make informed decisions about their trades based on current market conditions.
