Bitcoin and Ethereum took a small price gain last night. At the time of writing, Bitcoin is trading at $20,800 and Ethereum at $1,135. Dogecoin is also doing quite well with a plus of 3.8 percent over the past 24 hours.
With this, the crypto market continues to follow the traditional stock markets. The S&P 500 and Nasdaq 100 ended the day up 0.95 percent and 1.6 percent.
All eyes on the Federal Reserve
Bitcoin continues to hover around $20,000, the peak of the 2017 bull run, according to Edward Moya, an OANDA analyst, because everyone is currently trying to figure out how aggressively the Federal Reserve is going to act. “Bitcoin will likely remain dependent on the Federal Reserve until the entire financial market has bottomed,” Moya said.
In the long run, the analyst expects much higher prices for Bitcoin, but no one seems convinced at this point that the bottom has been found. Since the start of the year, Bitcoin and Ethereum have lost 55.8 and 69.7 percent of their value. Bitcoin is now down more than 70 percent from its all-time high.
On-chain analytics firm Glassnode reports that we have been in a bear market for 227 days from the all-time high of November 2021. If you measure the bear market from the April 2021 local high, we’ve been in a down market for 435 days. “This places the current bear market within the norms of historical bear markets.
“Pair fall in the next 24 to 48 hours”
Twitter analyst Justin Bennett doesn’t see things very bright for Bitcoin right now. “We’re going to have a brand new price drop in the next 24 to 48 hours or we’ll have a fake breakout in the next few days,” said Justin Bennett. A fake breakout means that the price temporarily breaks through a resistance and then falls back even harder.
Bennett also indicates that a new drop to the $16,000 to $17,000 is almost inevitable. Dutchman Michaël van de Poppe is more optimistic about Bitcoin. Van de Poppe indicates that Bitcoin is ready for another upward movement towards USD 23,000. “Most people who say we’re going even lower are basing that on something they’ve read on the internet,” thus the optimistic analyst.