Bitcoin (BTC), the world’s largest cryptocurrency, failed to prolong its upward rally and fell below $28,000 on Friday. Bitcoin was on a positive trend, reaching a high of $29,000 earlier in the week. However, these gains were short-lived as it declined below $28,000 today to show a bearish sentiment in the market.
However, bitcoin continued to struggle to break the $28,250 resistance while Ethereum is showing signs of consolidation.
crypto market fundamentals
Its upward rally can be attributed to the bullish US Dollar, which recently rose after a strong release US job growth dataThe prospect of a possible interest rate hike by the Federal Reserve in May is increasing.
The news will likely cause investors to shy away from cryptocurrencies such as bitcoin, which could lose value due to the stronger dollar.
Furthermore, if interest rates increase, it could increase the cost of borrowing and reduce economic growth, which could further affect the value of bitcoin and other cryptocurrencies.
Impact of the US Jobs Report on Crypto
The US economy is doing well, with a low unemployment rate and rising wages. As a result, the Federal Reserve could raise interest rates next month, which could negatively impact the price of bitcoin.
Higher interest rates can make it more difficult and expensive to borrow money to invest in bitcoin, reducing demand for bitcoin and potentially reducing its price.
However, the latest US job report has shown historically low unemployment rates, rising wages, and steady job growth. In March, the US economy added 236,000 jobs, an average of 345,000 job gains per month in the first quarter. This figure is well above the central bank’s goal of maintaining its 2% inflation target.
US unemployment rate weighs on BTC price
In addition, the unemployment rate declined from 3.6% in February to 3.5% in March, a modest increase of about half a million people in the labor force, and an increase in the participation rate. In addition, average hourly wages increased by 0.3% in March, which is slightly faster than the previous month.
These figures suggest that the US job market remains relatively strong despite the recent economic downturn. These figures are important because they give the Federal Reserve an idea of current economic conditions, which can influence its decisions on interest rates and other monetary policies.
Blockchain investment activity dropped significantly in March
The cryptocurrency market has been surging over the past month, leading many to believe that the bear market was over due to Bitcoin’s bullish trajectory. However, there are concerns that US regulations could make cryptocurrencies more challenging to use.
The impact of these regulatory concerns and the risk of a stagnant economy are reflected in the decline of investment in the crypto industry during March. This means fewer deals and less money made available, which is not good news for investors seeking stability.
bitcoin price
The current price of bitcoin is $27,900, with a 24-hour trading volume of $10.8 billion. Bitcoin is down by 0.74% in the last 24 hours. With a live market cap of $539 billion, Bitcoin is currently leading the market.
Technical analysis suggests that the BTC/USD pair is displaying a bearish bias, however it may face resistance near the $28,250 level.
In the event that bitcoin manages to overcome the $28,250 resistance, there are chances that its price could rise further towards $28,900 or $29,250.
On the other hand, if a bearish trendline emerges, the $26,500 and $25,500 levels are expected to act as an important support.
ethereum price
Ethereum is currently priced at $1,870, with a 24-hour market volume of $9 billion. On Saturday, the ETH/USD pair gained an immediate support near the $1,850 level. If the candle closes above this level, there are chances of a bullish rally towards the $1,920 or $1,945 levels.
Conversely, if there is a bearish break below the $1,850 level, ETH price could decline towards the $1,800 or $1,770 double lower support area. Overall, the trading bias for Ethereum looks bullish given the formation of an ascending channel on the 4-hour time frame.
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