While the RSI and MACD indicators suggest the upward trend of BTC may continue, the 50-day MA indicates a price above USD 19,700. ETH remains in the buying zone, strengthening the chances of a bullish rebound, while the support level holds at USD 1,404.
The price of Bitcoin (BTC) is nearly USD 20,480 and struggles below the 61.8% Fibonacci retracement level at USD 21,000. Likewise, Ether (ETH) plummeted by more than 2% to USD 1,579.
Leading cryptocurrencies recently traded in the red, but the overall crypto market capitalization remains above USD 1 trillion. The focus of investors’ attention will continue to be the upcoming announcement of the US Federal Reserve monetary policy.
Steve Hanke Believes the US Economy Will Enter a Sharp Recession
A sharp recession will occur in 2023, according to Steve Hanke, a professor of applied economics at Johns Hopkins University. He believes the main reasons are the current economic instability, characterized by central bank interventions, supply chain problems, and skyrocketing inflation.
Hanke estimates a 90% risk of a US recession, arguing that the money supply has shrunk at an unprecedented rate. He explained that the money supply increased too fast when the COVID-19 pandemic started, causing inflation to grow by 2%.
The CPI report for September indicated that the prices of everyday goods and services increased by 8.2%. In that regard, Hanke has highlighted the significance of the issue of quantitative adjustment.
Bitcoin Might Rise Considerably If the Bullish Trend Continues
Bitcoin is trading at around USD 20,447 and has accumulated a 4.5% gain over the last week. While its daily trading volume is above USD 25.37 billion, its market capitalization is about USD 392.40 billion, according to CoinGecko.
The price of BTC consolidates between USD 20,000 and USD 21,000, covered by Fibonacci retracement levels between 38.2% and 61.8%.
The RSI and MACD indicators remain bullish, suggesting that the bullish trend may continue. In addition, the 50-day moving average indicates that the buying price is above USD 19,700.
If the price exceeds the 61.8% Fibonacci level at USD 21,000, it might drive the buying trend to USD 21,900. If Bitcoin holds its current uptrend, it might reach USD 22,500 soon.
While the immediate support level of Bitcoin remains close to USD 20,250, investors might seek to buy after a bullish breakout of USD 21,000.
Ether Might Reach USD 1,810 If It Exceeds USD 1,650
Ether is trading at around USD 1,579 and has accumulated a 15.7% gain over the last week. While its daily trading volume is above USD 11.03 billion, its market capitalization is about USD 190.33 billion, according to CoinGecko.
The price of Ether consolidates between USD 1,545 and USD1,650, covered by a Fibonacci level of 61.8%. If it breaks above USD 1,650, it might hit USD 1,700 or USD 1,810 in the short term.
The RSI and the MACD indicators remain in the buying zone, strengthening the chances of a bullish rebound above USD 1,550. Meanwhile, the support level of the price continues to hold at USD 1,404.By Alexander Salazar
