Aurelia Butler

Bitcoin fell 0.3% to $94,268.7 by 01:12 ET (06:125 GMT). Bitcoin prices fell sharply last week, having declined six out of the previous seven sessions as potential token sales by the U.S. government eroded sentiment towards crypto.Robust U.S. employment data released on Friday has backed the Federal Reserve’s forecast of fewer rate cuts this year. In December, the U.S. economy added 256,000 jobs, surpassing forecasts of 153,000, and the unemployment rate declined to 4.1% from 4.2% in November. This strong labor market performance suggests that the Fed may adopt a more cautious approach to monetary easing.Higher interest rates can exert downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger U.S. dollar and reduced liquidity in financial markets. Additionally, elevated Treasury yields have been associated with declines in Bitcoin’s price, with some analysts suggesting that sustained high yields could push Bitcoin’s value down to around $90,000.Another factor influencing Bitcoin’s market dynamics is the potential for government sales of seized cryptocurrencies. Last week, media reports emerged saying that the Department of Justice had received court approval to sell about $6.5 billion worth of Bitcoin confiscated from the Silk Road black market. The U.S. government has previously liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply into the market, potentially impacting prices. This also likely opposes the idea of a strategic Bitcoin reserve under the Donald Trump administration, further weighing on the token.In the broader cryptocurrency market, Bitcoin’s performance continues to influence other digital assets. World no.2 crypto Ether fell 1.6% to $3,229.02.Bucking the trend, world no.3 crypto XRP rose 3.8% to $2.5139.Solana fell 1.3%, and Polygon declined 4.8%, while Cardano slumped 6.2%. Among meme tokens, Dogecoin lost 3.2%. More

The next important resistance levels to keep an eye on if the bullish momentum continues are $2.50 and $2.70. With a successful push above these levels, XRP might aim for $3.00, a psychological barrier that might pique investors’ interest once more. The breakout volume is noteworthy but not yet explosive, indicating that although the breakout is legitimate, more buying pressure could help the rally gain more traction.With an RSI of 59 right now, there is still opportunity for more upside before the market becomes overbought. If XRP is unable to maintain its position above $2.30, it may retest the descending trendline, which is currently serving as support at about $2.20. But if this level is broken, the bullish scenario may be invalidated and the price may move toward the $2.00 level, which is in line with the 100 EMA. All things considered, XRP’s breakout paves the way for a possible bullish rally with $3.00 serving as the crucial long-term target.To verify the strength of this breakout, traders should keep a careful eye on volume and support levels. With the technical structure suggesting expansion, XRP might be preparing for its next significant move.Right now, SHIB’s price is trading close to $0.0000200, just above the 200 EMA. By serving as a strong support area, this level has stopped a more severe sell-off. But the neckline of the pattern, which is at about $0.0000215, is still crucial. In line with previous demand zones, a confirmed breakdown below this level might lead to a strong move toward the next important support at $0.0000180.Immediate resistance on the upside is the $0.0000225 level. If this level is broken, the bearish pattern may be deemed invalid, allowing SHIB to retest $0.0000250. It would take significant buying pressure to break through this resistance level, which is in line with the 50 EMA.Volume analysis shows that there isn’t much bullish momentum, which makes the current pattern even more alarming. The RSI is also close to 45, indicating neutral conditions with potential for declines if sellers take control.SHIB’s next move will be largely determined by the price action around the neckline and 200 EMA, even though the head-and-shoulders pattern is not yet fully confirmed. Because a break in either direction could result in significant price movement, traders should keep a careful eye on these levels. For the time being, it is advised to exercise caution and to manage risk around these crucial levels.The absence of notable price movement contrasts sharply with the more dynamic performance of other crypto market assets. Bitcoin has not been able to draw in traders or bolster confidence in a possible breakout because of this muted activity. The price of Bitcoin is consolidating below the 50 EMA, a crucial resistance level close to $97,000, according to the daily chart.For there to be any possibility of an upward trend, this level must be broken. The $87,700 support level, which corresponds to the 100 EMA, is still a safeguard against further declines. A longer decline toward the 200 EMA at $78,000 might be in store if Bitcoin breaks below this.Although the RSI is currently at 45, indicating neutral sentiment, it also shows that Bitcoin does not have the momentum necessary for a significant move in either direction. Furthermore, the market’s below-average trading volumes support the idea that it is in a wait-and-see phase.This article was originally published on U.Today More