This Sunday was bullish for Bitcoin (BTC) and Ethereum (ETH), with BTC hitting a new 2023 high of $23,962.
Ethereum (ETH) was up 4.64% on Sunday. Reversing a 1.63% loss on Saturday, ETH ended the week up 1.04% to $1,645. Despite the bullish session, ETH revised below $1600 for the seventh session in a row.
A mixed start to the day saw ETH fall to an early morning low of $1,567. Pulling away from the first major support level (S1) at $1,550, ETH rallied to a late high of $1,661. ETH broke above the first major resistance level (R1) at $1,601, and the second major resistance level (R2) at $1,629, to end the day at $1,645.
On Sunday, Bitcoin (BTC) rose 3.11%. Reversing a 0.16% loss from Saturday, BTC ended the week up 4.55%, at $23,746. BTC hit a new 2023 high of $23,962, and avoided below $23,000 for the first time since August 19, 2022.
A mixed start to the day saw BTC fall to an initial low of $23,000 before making a move. Moving away from the first major support level (S1) at $22,876, BTC rallied to a late high of $23,962. BTC broke above major resistance levels, to close the day at $23,746. The third major resistance level (R3) at $23,639 provided late support.
Fed Policy Sentiment and FTX Contagion Relief Delivered Support
There were no external market forces to provide direction for BTC, ETH, and the broader market on Sunday. However, market bets on a 25 basis point Fed rate hike on Wednesday, and a less aggressive interest rate path to bring inflation to the price support target delivered.
A less aggressive interest rate path would also reduce the chances of a hard landing, another positive for riskier assets.
For the crypto market, alleviating the risk of contagion from FTX remains the key factor in the short term. However, the latest communication from the White House created even more regulatory uncertainty for crypto investors to navigate.
The call for lawmakers and regulators to step up regulatory oversight could see the SEC step up its regulation through the enforcement mantra, without the crypto market benefiting from a clear regulatory blueprint.
Today, investors should monitor crypto newswires for updates on FTX and Genesis, and the Shanghai hard fork talk should also be considered. Investors should watch for any suggestion of a delay in the schedule of the hard fork planned for March.
In the afternoon session, the NASDAQ index will likely weigh in ahead of Wednesday’s interest rate decision.
Ethereum (ETH) and Bitcoin (BTC) Price Action
ETH was down 0.56% at $1,636. A mixed start to the day saw ETH rally to an early high of $1,648 before falling to a low of $1,632.
Meanwhile, BTC was down 0.10% to $23,723. A mixed start to the day saw BTC rally to an early high of $23,785 before falling to a low of $23,569.
By Audy Castaneda
