Can Bitcoin and Ethereum Continue to Rise?

 | Jan 20, 2023 09:42AM ET

  • Cryptocurrencies started the year on the front foot but lost momentum this week
  • Bitcoin and Ethereum are currently trading near critical resistance
  • Next moves could be crucial in determining the market's mid-term direction
  • Nearly a week after moving above $20,000 last weekend, Bitcoin has not yet seen a daily close above the 21,300 - 400 resistance, last reached in November.

    While there is a similar momentum in the Ethereum market, the largest altcoin has a more seller-weighted horizontal outlook this week. While Ethereum moved toward $1,600 during the week, the support at $1,500 has solidified for now.

    Last week, the crypto market, buoyed by the US CPI data, saw steep rises. This week, the view that the impact of the CPI data remained limited as retail sales were lower than expected dominated the market. The risk appetite decreased slightly.

    On the other hand, this week's negative developments in the crypto industry dampened the upbeat mood. The market was nervous when the US Department of Justice was due to make an important announcement. However, the announcement of the seizure of the Hong Kong-based Russian crypto exchange, an operation that has been going on since September, eased investors' nerves a little. Still, the alarm sounded by the US DOJ was noteworthy.

    Late yesterday, the news of the bankruptcy of Genesis, one of the biggest companies in the crypto sector, shocked the market. However, for now, the negative impact of this remained limited.

    h2 Bitcoin Stuck at Critical Resistance Level/h2

    Bitcoin has struggled to break through the critical resistance zone at $21,300 this week. Bitcoin buyers, who have passed all resistance zones without any problems until coming across this area, have reduced their activity as the price settled near $21,000.

    The consolidation may continue as the profit-taking ensues after a steep rally. In a possible correction, the $20,500 - $20,000 range currently stands as the closest support zone. Below that level, the $19,200 and $18,500 levels may be the next support zone.