Back to blog

Crypto Market Faces Downside Risk in Next 24 Hours; Upward Trend Predicted Over Next Week; US Job Data Recession Fears Heighten Uncertainty

Date
06/04/2023
Written by
Lykke
Share

Short read

April 6, 2023 – The global crypto market is slightly bearish with downside risk in the next 24 hours, with Ethereum in particular facing downside risk, according to ATTMO, a weather-inspired crypto AI forecasting tool. As for XRP, an imminent market rebound lies ahead, ATTMO data show.

Over a one-week horizon, ATTMO expects a slightly bullish market with upside potential for both major cryptocurrencies –  Bitcoin and Ethereum, ATTMO data shows. Smaller currencies, with the exception of XRP and Dogecoin, should also benefit from this bullish mood and have upside potential.

Long read

The global crypto market is slightly bearish with downside risk in the next 24 hours, according to ATTMO, a weather-inspired crypto AI forecasting tool. It’s particularly Ethereum that will be in the eye of the storm over the next hours. As for XRP, an imminent market rebound lies ahead, ATTMO data show.

Over a one-week horizon, ATTMO expects a slightly bullish market with upside potential for both major cryptocurrencies –  Bitcoin and Ethereum, ATTMO data shows. Smaller currencies, with the exception of XRP and Dogecoin, should also benefit from this bullish mood and have upside potential.

Ethereum in the spotlight ahead of Shapella upgrade

The price of Bitcoin dropped 1.6 percent to 28,063 US dollars over the past 24 hours, after it broke a key resistance level at 28,500 dollars. It then fell back on profit taking, though some analysts expect Bitcoin to soon reach 29,000 dollars. A Securities and Exchange Commission filing shows that Microstrategy, a business intelligence company, bought another 1,045 Bitcoins for 23.9 million dollars, bringing up its holding of Bitcoins to around 140,000, worth nearly 4 billion dollars at the current price.

Among smaller currencies, XRP shed 3.5 percent. Investors are eagerly awaiting the ruling of Judge Analisa Torres in a New York court. Her ruling is expected to have wide-ranging implications for the entire US cryptosphere as it will become clearer whether XRP and other cryptocurrencies should be classified as securities or as commodities, which fall under less stringent rules than securities. 

Dogecoin decreased 4.5 percent on profit taking. The cryptocurrency rallied 33 percent on Friday when Elon Musk in a surprise move exchanged Twitter’s iconic blue bird logo with that of Dogecoin’s dog meme on the social media’s desktop version. His move has been interpreted as explicit support for Dogecoin. It is still up  21 percent from Friday.

Recession fears ahead of tomorrow’s US job data

Job figures released in the US earlier this week signaled a slowdown of the US economy, triggering recession fears. Additional US job figures will be released this afternoon and tomorrow. The number of jobs in the private sector and government agencies is expected to have dropped to 240,000 in March compared to 311,000 in February, according to analysts. This would indicate a slowdown of the US economy.  

Investors thus switch to safe-haven assets such as government bonds and gold. One ounce of gold today costs 2,015 dollars, trading close to its all-time high of 2,069 dollars. This puts pressure on riskier assets such as cryptocurrencies. 

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.

Share this