Although the start of the new year took off on a bullish note for the crypto market, the landscape has gradually changed now, as several macro conditions have sparked bearish sentiment among large-cap investors.
Additionally, the past 24 hours have caused severe pain for traders as several cryptocurrencies including Cardano, Bitcoin, and Ethereum nearly hit 3-week lows. Therefore, the market is waiting for a sign of a bullish retracement in the coming week, which could once again generate excitement in the community.
Will there be a new uptrend next week?
After hovering in a limited area for a long time, BTC price declined after Powell’s speech and intensified its downtrend after the SEC targeted crypto staking. As the price of Bitcoin quickly crashed below its retracement levels, it forced the altcoin market to trigger a sharp drop of more than 10%.
bitcoin price analysis
Over the past two days, the global crypto market cap has lost over $70 billion, plunging it to the $1.01 trillion level. However, as BTC witnessed a steep drop, several analysts believe that this was a much-needed correction to reinforce the golden cross formation.
At the time of writing, the price of Bitcoin is trading at $21.7,000, with a slight downtrend over the past 24 hours. Bitcoin price is currently building potential to break through its crucial $25,000 resistance level. As the golden cross (MA50*MA200) strengthens its move, it could fuel an upward retracement for BTC by next week. If BTC price moves to its 31.8% Fib retracement and breaks its crucial $23,000 resistance; it may soon begin its 7th bull cycle.
Ethereum Price Analysis
Ethereum investors are currently filled with the hype of the upcoming Shanghai upgrade as the development team announced that the Shapella fork on the Zhejiang testnet is almost on its way to pre-launch. However, despite strong updates, ETH investors are feeling less confident and liquidating massive funds in the last 24 hours as last year’s Merge event wiped out all bullish hopes.
The price of ETH is currently trading at $1,521, trending down 1.5% from yesterday’s price. Looking at the daily price chart, Ethereum is gearing up to retest its $1,250-$1,350 zone next week. However, if the buyers keep their patience, the price of ETH could rebound from this level and follow the bullish trend of Bitcoin. A break above $1,600 will bring ETH price back on track and set a target of $2,000 by the end of the month.
Cardano Price Analysis
This weekend has triggered a correction in the altcoin market, and major altcoins are forming an extremely bearish pattern. However, builder Cardano Input Output Global (IOG) has delivered on its promise as it is set to launch the SECP upgrade on Valentine’s Day. Additionally, Project Catalyst received the 400th Project Closing Report, marking an important moment for the ADA community.
ADA price is hovering at $0.36 and it is retesting the support at EMA-100. A break below this level will cost the ADA token $0.3 before starting a smooth rally next week.