Though 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 brought bearish sentiment among large-cap investors.
Moreover, the last 24 hours have brought solid pain to traders as several cryptocurrencies, including Cardano, Bitcoin, and Ethereum, have almost reached their 3-week low. Hence, the market awaits a sign of a bullish retracement in the upcoming week, which may again spark excitement in the community.
Will There Be A Fresh Uptrend Next Week?
After hovering in a range-bound zone for a long time, BTC price went downward after Powell’s speech and intensified its bearish trend after the SEC targeted crypto staking. As Bitcoin price slumped below its retracement levels rapidly, it forced the altcoin market to ignite a steep fall of over 10%.
Bitcoin Price Analysis
In the last two days, the global crypto market cap lost over $70 billion, plunging it to the level of $1.01 trillion. However, as BTC witnessed a hard plunge, several analysts believe it was a much-needed correction to strengthen the golden cross formation.
As of writing, Bitcoin price trades at $21.7K, with a minor downtrend in the last 24 hours. Bitcoin price is currently building potential to break its crucial resistance level of $25K. As the golden cross (MA50*MA200) strengthens its movement, it may fuel an upward retracement for BTC by the next week. If BTC price moves to its 31.8% Fib retracement and breaks its crucial resistance of $23K; it may begin its 7th bull cycle soon.
Ethereum Price Analysis
Ethereum investors are currently filled with the hype of the upcoming Shanghai upgrade as the developing team announced that the Shapella fork on the Zhejiang testnet is almost on the verge of its pre-launch. However, despite solid updates, ETH investors are feeling less confident and liquidating massive funds in the last 24 hours, as last year’s Merge event eliminated all the bullish hopes.
ETH’s price currently trades at $1,521, with a downtrend of 1.5% from yesterday’s price. Looking at the daily price chart, Ethereum is preparing to retest its $1,250-$1,350 zone next week. However, if buyers hold their patience, ETH price may rebound from that level and follow Bitcoin’s uptrend. A breakout above $1,600 will bring the ETH price on track and set a goal of $2K by the month’s end.
Cardano Price Analysis
This weekend has sparked a correction in the altcoin market, and major altcoins are forming an extremely bearish pattern. However, Cardano builder Input Output Global (IOG) has kept its promises as it is set to launch the SECP upgrade on Valentine’s Day. Moreover, Project Catalyst received the 400th project close-out report, marking a significant moment for the ADA community.
ADA price hovers at $0.36, and it is retesting support at EMA-100. A breakout below this level will take the ADA token $0.3 before initiating a smooth upward rally next week.