Is a Market Correction Imminent for BTC and ETH in the next 24 hours, and Could BNB Be a Good Buy Opportunity?

Short read

April 12, 2023 – Bitcoin (BTC), which rose 5 percent over the past week,  is at risk of an imminent market correction within the next 24 hours as US inflation data may surprise on the upside, according to ATTMO, a weather-inspired cryptocurrency predictions tool based on AI. Ethereum (ETh) faces a slightly bearish market with a downside risk in the coming 24 hours, ahead of tomorrow’s Shapella upgrade. 

The afternoon’s US inflation figures will signal whether or not the Federal Reserve’s (Fed) rate hike cycle is coming to an end. The release of minutes from the Fed’s March meeting will give additional indications.

Over a one-week horizon, ATTMO expects the following cryptocurrency trends: a slightly bullish market with upside potential for Bitcoin, Ethereum and Binance (BNB). As for Dogecoin (DOGE) which faces an extended bear market during the coming week, our crypto prediction tool forecasts an imminent market rebound over a one-week horizon.

Long read

Bitcoin (BTC), which rose 5 percent over the past week,  is at risk of an imminent market correction within the next 24 hours as US inflation data may surprise on the upside, according to ATTMO, a weather-inspired cryptocurrency predictions tool based on AI. Ethereum (ETh) faces a slightly bearish market with a downside risk in the coming 24 hours, ahead of tomorrow’s Shapella upgrade. 

The afternoon’s US inflation figures will signal whether or not the Federal Reserve’s (Fed) rate hike cycle is coming to an end. The release of minutes from the Fed’s March meeting will give additional indications.

Over a one-week horizon, ATTMO expects the following cryptocurrency trends: a slightly bullish market with upside potential for Bitcoin, Ethereum and Binance (BNB). As for Dogecoin (DOGE) which faces an extended bear market during the coming week, our crypto prediction tool forecasts an imminent market rebound over a one-week horizon.

Crypto markets consolidate last week’s gains

The price of Bitcoin yesterday traded above 30,400 US dollars, the highest level since June last year. Some analysts note that the world’s largest cryptocurrency tends to outperform the year ahead of its halving, set to take place around April next year. When halving takes place, the reward granted for mining Bitcoins is halved which increases its scarcity. Bitcoin projections thus point toward an upward trend. 

The price of Bitcoin percent fell 0.4 percent over the past 24 hours, while that of Ethereum dropped 2.6 percent ahead of tomorrow’s Shapella upgrade. The long-awaited upgrade of its proof-of-stake (PoS) mechanism on April 12 will enable Ethereum’s miners to withdraw coins they have staked partially or fully. More details can be found about the imminent Shapella upgrade here.

IntoTheBlock reports that less than 1 percent of ETH miners have chosen to withdraw their Ethereums from staking, and thus deduct the price of Ethereum won’t come under pressure. 

Among smaller currencies, Dogecoin has lost 16 percent over the past week on profit-taking. The cryptocurrency had surged as Twitter owner Elon Musk exchanged the social media platform’s iconic blue bird with that of Dogecoin’s dog logo for a couple of days. 

XRP lost 3 percent as the US regulator, the Securities and Exchange Commission (SEC) filed a notice of supplemental authority to the judge handling its case against XRP. SEC in this notice argues that a recent court ruling in Massachusetts gives legal precedence in its favor. A ruling is expected in the coming weeks and may have wide-ranging repercussions on the entire cryptosphere, as it will signal whether cryptocurrencies qualify as securities or commodities. 

Crypto market predictions affected by the release of US inflation data

Investors focus on the latest US inflation figure, which will be released at 14:30 CET. March inflation is forecast to drop to 5.2 percent year-on-year compared to 6 percent in February, according to the analyst consensus. Core inflation, which excludes food and energy prices, is however set to edge higher to 5.6 percent in March, the estimates show. 

This upward in core inflation means that the Federal Reserve will have to continue to raise its interest rates when it meets in early May, to curb inflation. Higher interest rates make safe-haven assets such as bonds more attractive to hold than risker assets such as stocks and crypto assets. 

The release of the minutes from the Fed’s latest meeting later in the evening will additional indications of the central bank’s reasoning over how it should handle a potential recession in the wake of the recent bank crisis, combined with inflationary pressure.

DISCLAIMER
These forecasts are not trading advice; they are only decision-support tools. They do not include information that is specific to the user; in particular, they do not account for their personal risk appetite or market assessment.