Cryptocurrency Market Navigates Turbulence as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) Struggle to Regain Momentum

The cryptocurrency market continues to navigate turbulence as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) struggle to regain bullish momentum.

The cryptocurrency market is still navigating choppy waters as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) struggle to regain bullish momentum after a turbulent period.

Technical indicators suggest that further corrections may be in store for the crypto market after a significant pullback last week. Macroeconomic pressures and a shift in institutional activity have also contributed to the recent downturn.

Bitcoin (BTC) Struggles to Regain Momentum Amid Macroeconomic Pressures

Bitcoin (BTC) is trading slightly higher on Monday, with BTC/USD hovering around $82,000. The world’s leading cryptocurrency is attempting to recover after a steep decline of 15% last week.

Bitcoin struggled to recover amid macroeconomic uncertainties and its increasing correlation with traditional stock markets. The U.S. dollar index (DWI) also rose last week, further weighing on BTC.

Bitcoin price analysis: BTC struggles to stay above $80,000 amid macroeconomic pressures

Technical Outlook for BTC:

Support levels: $72,000, $64,000, $56,000

Resistance levels: $80,000, $88,000, $96,000

Bitcoin (BTC) is trading at $79,000.00.

After a turbulent period in 2022, Bitcoin (BTC) is once again facing choppy waters as macroeconomic headwinds continue to pose challenges for the cryptocurrency market.

Bitcoin price has dropped nearly 15% over the past seven days as technical indicators suggest that further corrections may be in store for the crypto market after a significant pullback last week.

Moreover, a shift in institutional activity has also contributed to the recent downturn, setting the stage for what could be a crucial week of trading for Bitcoin and other major cryptocurrencies.

Bitcoin struggles to recover from recent drop

The world’s leading cryptocurrency is struggling to recover after a steep decline of 15% last week. Bitcoin dropped to as low as $70,000 on Friday, marking its worst decline since March 2020 at the height of the coronavirus pandemic.

Bitcoin was struggling to recover on Monday as macroeconomic uncertainties continued to pose challenges for crypto. Bitcoin dropped as low as $70,000 last week amid a turbulent period for the crypto market.

The cryptocurrency market had been enjoying a strong rally in the first quarter of 2023 as several positive developments unfolded. This rally saw Bitcoin rise to an 18-month high of around $73,000 in late March.

However, this rally stalled last week as several key macroeconomic indicators began to suggest that the U.S. Federal Reserve may not be done raising interest rates just yet.

Despite cutting interest rates by 25 basis points at its April meeting, the Fed signaled that it could keep raising interest rates through the second quarter of 2023 as part of efforts to tame inflation.

Rising interest rates bode poorly for cryptocurrencies as they tend to reduce the present value of future earnings, especially for speculative assets like crypto.

The cryptocurrency market also faced headwinds from the U.S. dollar index (DWI), which rose last week. The DWI measures the greenback against a basket of six major currencies.

A strong dollar tends to weigh on cryptocurrencies as it makes them more expensive for foreign buyers.

Technical Outlook: BTC may continue to face downward pressure

From a technical perspective, Bitcoin is now approaching the average cost basis of investors, which is around $46,000, according to Glassnode.

This level is closely followed by on-chain analysts as it could largely determine the next move for Bitcoin. If the price drops below the average cost basis, then it could open the door for further losses.

On the other hand, if Bitcoin manages to stay above this level and technical indicators begin to suggest a shift in momentum, then it could pave the way for a return to the key resistance level at $80,000.

A break above this level could see Bitcoin continue rallying toward the next resistance level at $88,000.

Ethereum (ETH) Downward Pressure Continues As Pectra Upgrade Hits Snags

Ethereum (ETH) is down 3% on Friday, trading around $4,100 after a steep decline of nearly 20% in the past week.

The second-largest cryptocurrency is now approaching the average cost basis of investors, a crucial level that could largely determine the next move for ETH.

If the price drops below this level, then it could open the door for further losses. But if ETH manages to stay above this level and technical indicators begin to suggest a shift in momentum, then it could pave the way for a return to the key resistance level at $4,800.

A break above this level could see ETH continue rallying