As Bitcoin’s price trend significantly controls the bull run in the first quarter of 2023, investors are worried about future trends as BTC shows no signs of promising momentum ahead. Despite a bullish start to the year, Bitcoin and Ethereum prices face challenges in meeting investor expectations as macro factors reinforce bears’ dominance. However, several analysts believe that the recent difficulties in BTC and ETH prices are a temporary setback, and prices will surely rebound as investor confidence returns.
Can traders expect a bounce in BTC and ETH prices?
Bitcoin and Ethereum prices have been hovering around a critical price zone for the past two weeks, trapping bulls with severe sentiment of uncertainty. In recent days, Bitcoin bulls have shown weakness pulling the price of BTC above its extended consolidated level, raising concerns of a sudden bearish reversal.
bitcoin price analysis
Despite the sideways trend in the BTC price chart, the asset is still under the radar of an institutional investment opportunity, as CoinShares reported an institutional inflow of $117 million, hitting a 7-month high after being influenced by an astronomical surge in January. Moreover, the long-short and loan ratios are trading in a stable region, suggesting bullish control.
At the time of writing, the price of BTC is trading at $22,924 with a minor rejection from its immediate resistance level. Analyzing the daily price chart, the price of BTC is falling near the $23,000 level and a break below its immediate support level of $22,700 could intensify the short-term downward retracement to near $21,500. of the EMA-200.
Additionally, the SMA-14 forms a bearish divergence with the current price trend, which could start a rally lower this week. However, a rebound from $21,000 should fill the golden cross formation, pushing BTC price to a critical resistance level of $25,000.
Ethereum Price Analysis
Ethereum price triggered a bullish comeback after retesting its support level at $1.6K. As payments giant Visa announced stable settlements on the Ethereum blockchain, it lowered expectations to a short-term bullish target of $2,000.
According to CoinMarketCap, ETH price is trading at $1,638 and paving the way to trade above the crucial $1,665 level. Well-known crypto trader TradingShot predicts Ethereum price to rise as the EMA-50 attempts to break the EMA-200 trendline, forming a golden cross in the daily price chart . A break above its current consolidation range could send ETH price testing its resistance at $1,790, and a continuation of the trend could form resistance near the $2,000 mark.
If ETH price retraces lower and trades below the 23.6% Fib level, it could drop to $1.5,000 and a rebound from this level could develop a bullish reversal.