The global crypto market was down and is appearing to slide further after the recent rally. The world’s most popular cryptocurrencies, Bitcoin and Ethereum are trading in the red. The change has affected almost all major coins shows bearish signs.
BTC Price Action
At press time, Bitcoin is correcting gains and might decline further if it breaks the $42,800 support. Bitcoin price is now trading above $42,500 and the 100 hourly simple moving average. On the upside, immediate resistance is near the $44,000 level.
On the downside, immediate support is at $43,000 level. The next key support lies at $42,750 level. The range of $43k-$46k is a very critical one, and if Bitcoin prices successfully break this level, then we might move to $50k. Else, this could turn into a bull trap.
Bitcoin Price Predicted to Hit $200K!
In a note titled “Digital Assets in a Post-Cycle World,” FSInsight noted that Bitcoin grew increasingly associated with stocks toward the close of last year and declined when faced with the potential of central bank tightening.
Because of “traditional market capital entering the fold,” Sean Farrell, head of digital asset strategy, wrote in a note on Friday that the correlation has gotten more obvious with bitcoin and the entire crypto market now being significantly connected with technology equities.
However, Farrell stated that bitcoin is still king and that the cryptocurrency might hit $200,000 in the second part of the year, after a rocky start to 2022.
According to FSInsight, Decentralized finance (DeFi), non-fungible tokens (NFTs), and other Web 3 applications, have fueled the Ethereum network’s tremendous growth.
Ethereum (ETH) Price Poised For 3x Rally
Ethereum’s price failed to clear the $3,200 resistance level. The altcoin started a downtrend below $3,100 and ETH price is all set to test the $3,040 support. In an extended downtrend, the next major support is near $3K below which there is a risk of a sharp decline.
According to the analysis of FSInsight, Ethereum is undervalued in comparison to cloud platforms, and ether, the network’s native token, might reach $12,000 in 2022.