Both of these digital currencies have seen a sharp uptick in activity recently, but according to Santiment’s NVT price prediction model, they require increased network utility to justify their current market caps. This means that the circulation rate of both networks needs to pick up before the end of 2023 for them to remain competitive with other coins.
This week will be telling as it marks the first non-holiday period after new year’s, which could give us useful insights about the direction of both Bitcoin and Ethereum prices. Investors should remain alert for any changes in network activity or transaction volume that could have implications on their future performance. If activity remains stagnant or declines, it could spell a bearish outlook for both coins.
On the other hand, any indication of a bullish trend could cause prices to spike higher in the short term. Whichever scenario plays out, investors should do their research and ensure they are making informed decisions when it comes to their investments. In addition, traders should use caution when taking on any leverage positions as the unpredictable nature of digital currencies can make them high-risk investments.
As always, it’s important to diversify your portfolio and never invest more than you can afford to lose. With this in mind, traders should monitor both Bitcoin and Ethereum closely to capitalize on potential opportunities throughout the year.
What do technicals suggest about BTC & ETH prices?
According to technical analysis, Bitcoin and Ethereum are both currently in a sideways trading pattern, indicating that there is no clear trend towards either direction. This could be due to the market uncertainty following the new year’s holidays, as investors may still be assessing their strategies before deciding on whether to buy or sell.
In terms of chart patterns, both Bitcoin and Ethereum remain in an ascending triangle formation, meaning that they could break out either to the upside or downside. If investors expect bullish momentum from either coin, then it’s likely that a breakout will occur on the upper side of the triangle. On the other hand, if bearish sentiment takes hold then prices may dip below the support levels of the pattern.
Source: Tradingview
In any case, traders need to watch both Bitcoin and Ethereum closely to anticipate potential price movements. By monitoring the technical indicators associated with these assets, investors can gain insight into what direction prices could move in the near future. Additionally, being aware of any news or events that could cause prices to fluctuate can help traders make better decisions when it comes to their investments.
The RSI and MACD indicators for both Bitcoin and Ethereum are still in the neutral zone, indicating that there is no clear trend as of yet. This could mean that prices may remain in their current ranges before making a decisive move either to the upside or downside.
Conclusion
Overall, traders need to keep an eye on both Bitcoin and Ethereum price movements. The lack of a clear trend could mean that prices may remain range-bound in the short term, but investors should watch out for potential breakouts or breakdowns depending on market sentiment.
