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17.03.2025 10:32 AM
Bitcoin and Ethereum struggling to stay afloat

Bitcoin and Ethereum carry on with their efforts to grow, despite encountering difficulties each time. Nevertheless, the chances of a return to a bullish market remain quite high.

After a significant dip to around $82,000, Bitcoin has recovered to the $84,000 area today. Ethereum, having tested the $1,865 level during Asian trading, climbed to $1,913 but then saw a sharp drop in demand.

Meanwhile, over the past trading week, net outflows from spot BTC ETFs amounted to -$921.4 million, compared to -$739.2 million the previous week. Net outflows from spot ETH ETFs totaled -$189.9 million, up from -$93.9 million a week earlier. The protracted outflow of funds from spot ETFs indicates a sense of panic among investors following the recent cryptocurrency market sell-off.

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Investors are likely looking to lock in profits or cut losses amid heightened volatility. This outflow could exert extra pressure on cryptocurrency prices, especially if it continues in the coming days. Importantly, ETF outflows are not the only indicator of market sentiment. Other factors, such as trading volumes on exchanges, social media activity, and macroeconomic indicators, also play a crucial role. Nonetheless, the observed capital outflows highlight the need for a cautious approach to cryptocurrency investments in the current market environment. Traders and investors should closely monitor developments and consider multiple factors when making investment decisions.

The European Central Bank recently stated that the United States frequently serves as the source of global financial crises, and its current support for crypto assets and the non-banking sector poses risks to the future stability of the global economy. According to ECB economists, the risks associated with crypto assets stem from their high volatility, lack of transparency, and susceptibility to manipulation. The absence of clear regulation allows them to spread rapidly and create systemic issues, particularly if they are closely linked to the traditional financial system.

The ECB's statement serves as a warning about the need for more thorough regulation and oversight of crypto assets and the non-banking sector in the US.

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Technical analysis of Bitcoin

Buyers are currently aiming for a return to the $85,000 level, which would pave the way to $87,000, bringing the $89,400 level within reach. The ultimate target would be the $91,900 area, a breakout of which would signify a return to a medium-term bullish market. In case of a decline, buyers are expected at $82,600. A move below this level could quickly push BTC down to $80,800, with the furthest downside target at $78,800.

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Technical analysis of Ethereum

A clear consolidation above $1,929 would open the path toward $2,015. The furthest target would be the annual high of $2,117, breaking which would mark a return to a medium-term bullish market. On the downside, buyers are expected at $1,848. A drop below this level could swiftly bring ETH down to $1,767, with the lowest target at $1,682.

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