Bitcoin and Ethereum, Bitcoin is returning over $22,000 to begin the week on a positive note, while Ethereum stays flat. Over the course of a week, however, the two largest cryptocurrencies on the market achieved equal performance (+12%) at the outset of a potentially eventful week.
Remember that Bitcoin is returning from a distance, the cryptocurrency has reached a low of $18,540 at the beginning of the week, its lowest level in around a month. However, the cryptocurrency soon began a robust climb, which matched a revival of confidence apparent in the stock markets.
The situation remains unchanged on Monday morning, with optimism bolstered by Ukrainian success in the fight against Russia, which provides hope for a quicker than predicted conclusion to the conflict. Similar to Ethereum and the majority of other cryptocurrencies, the price of Bitcoin is rising today.
The fate of Bitcoin and Ethereum will largely depend on US inflation
Given the impending occurrence of a significant event that might affect cryptocurrencies as well as other global markets, it will be prudent to maintain prudence tomorrow.
Indeed, traders are eagerly expecting the publication of inflation data from the United States, with the CPI for August scheduled for release tomorrow at 2:30 p.m., data that may considerably impact expectations for the next Federal Reserve meeting. US Federal (Fed).
Indeed, higher-than-anticipated inflation might increase the likelihood of ongoing aggressive monetary tightening, which would impact Bitcoin and other cryptocurrencies.
Inversely, weaker-than-anticipated inflation would relieve pressure on the Fed and enable it to contemplate a pause in rate rises, which would be positive for Bitcoin, Ethereum, and other cryptocurrencies.
Currently, the money markets are putting in a roughly 90% possibility that the Fed will raise rates by 0.75 percentage points at its September 21 meeting.
A reduction in this likelihood in favour of a more modest 0.5% increase after tomorrow’s US CPI might be a key positive driver for Bitcoin and Ethereum.
Target $25,000 if Bitcoin exceeds this threshold
Since this morning, Bitcoin’s price has increased, which obviously enhances its graphical profile. The $22,000 mark that was reclaimed this morning is now the first possible support to consider.
The zone between $20,700 and $21,000 will be the subsequent possible support before the psychologically significant level of $20,000.
On the upside, the $22,500 zone, which has performed as support on many occasions over the last few months, will be the first possible roadblock. Then the path will be clear till the $25,000 barrier.
Notably, a comeback above $25,000 may have a huge psychological effect, but Bitcoin’s daily negative backdrop trend will not begin to reverse until the trendline is passed. seen since the peak of 2021 and presently positioned at $27,000
The key threshold of $2000 in sight on Ethereum?
Regarding the price of Ethereum, the second-most-valuable cryptocurrency on the market, the $1800 level is an immediate resistance, before $1900. The important psychological threshold of $2000 might therefore be directly addressed.
To question the underlying bearish trend of ETH in daily data, however, the crossing of a trend line evident from November 2021 high and now around $2200 will be required.
In conclusion, both Bitcoin and Ethereum have had promising openings to the week, suggesting that significant goals might be reached as early as this week, but chart confirmations are still required at this time.