Bitcoin and Ethereum Price Forecast: Exciting Day Ahead with US Nonfarm Payroll Report
Both Bitcoin (BTC) and Ethereum (ETH) were able to maintain stability at around $23,000 and $1,600 respectively. Previously, BTC reached an all-time high of over $24,000 after the Federal Reserve increased interest rates by 25 basis points.
Later today, the release of the US January Nonfarm Payrolls is anticipated, with potential to greatly influence the prices of Bitcoin and Ethereum.
The cryptocurrency market has been significantly impacted by the latest US Federal Reserve policy. After the Fed declared that it would decrease interest rate increases to 25 basis points, Bitcoin and other digital assets experienced a rise in worth.
On Thursday morning, the price of BTC reached a 6-month high as it briefly surpassed the $24,000 mark. Following this trend, Ethereum has experienced a significant increase and is currently being traded at $1,641.
Furthermore, traders are reluctant to make any significant offers as the upcoming Non-Farm Payrolls (NFP) data, set for today, will probably have an impact on the Bitcoin price. These statistics are essential because they will shape the Fed’s future choices.
Furthermore, the robust job market growth suggests that the Federal Reserve will continue its accommodative policy during the upcoming meetings.
Important Day for Bitcoin; US Nonfarm Payrolls in January are Coming Up
Today is the release date of the US January Nonfarm Payrolls report, which could potentially have a major impact on Bitcoin. This report gives an indication of the state of the US economy and could affect the value of Bitcoin. It is predicted that the report will reveal a decrease in job additions in January, which would be a favorable outcome for Bitcoin investors.
Furthermore, other economic indicators such as ISM Services PMI and Final Services PMI will also be unveiled today and might impact Bitcoin prices.
Investors should closely monitor these reports to make knowledgeable decisions regarding their investments in cryptocurrencies.
TD Securities analysts have forecast a 220K increase in US non-farm payrolls and an expected increase in the Unemployment Rate to 3.6%.
Experts indicate that the Average Hourly Earnings have risen annually by 4.9%, yet have remained steady at 0.3% on a monthly basis. This is an improvement from the previous release of 4.6%.
With demand for labor exceeding supply, job seekers have more negotiation power. This could result in higher price indices, which could counterbalance expectations for a slowdown in the Federal Reserve’s policy of tightening.
Cathie Wood Declares Bitcoin to be the Best Insurance
As stated by Cathie Wood, the CEO of ARK Invest, Bitcoin is considered a valuable asset for safeguarding wealth and providing financial security to those who are economically challenged around the world. This perspective has probably contributed to the increase in its price.
Cathie Wood, a staunch supporter of cryptocurrency, is optimistic that Bitcoin will reach the $1 million milestone. She thinks that digital currency offers equal opportunities for both the rich and those with limited financial means to secure their assets.
Bitcoin (BTC) is currently priced at $23,480 with a 24-hour trading volume of $29 billion. It holds the top position on CoinMarketCap and has a market capitalization of over $452 billion. There are 19.28 million BTC coins in circulation and a maximum supply of 21 million coins.
Technically, Bitcoin is moving lower towards an immediate support level of $23,300. If this level is breached, further selling could drive the price down to $23,000, where an upward trendline may offer support.
The RSI and MACD indicators are showing a selling trend, so additional selling pressure could drive the BTC price towards the next support level of $22,750.
Since the 50-day exponential moving average is still indicating a buying trend above $23,300, there may be a bullish rebound in the BTC/USD pair. On the positive side, a bullish breakout above $23,950 could drive the BTC price towards $24,500.
The current trading price of Ethereum is $1,639 with a 24-hour volume of $9.1 billion. The cryptocurrency has experienced a 1.50% decrease in the past 24 hours and has a market capitalization of $200 billion, making it the 2nd largest cryptocurrency according to CoinMarketCap.
From a technical perspective, Ethereum was unable to break above the key resistance level of $1,710 and has since plummeted to trade around $1,635, likely due to profit-taking among investors. Ethereum was overbought and has already reached the 50% Fibonacci retracement at the $1,635 level.
At the moment, if Ethereum fails to remain above this level, it could result in the price dropping to the 61.8% Fibonacci retracement level at $1,615.
The RSI and MACD indicators are currently at 54 and 0.90 respectively, indicating that Ethereum is not in an overbought state and may experience bullish dominance. Additionally, the 50-day EMA suggests a potential uptrend in ETH’s price above $1,620.
Ethereum’s resistance levels are located at $1,650 and $1,680. If these levels are surpassed, Ethereum may see a price increase up to $1,720.