The global cryptocurrency market rose 1.8% on Wednesday to $1.2 trillion as investors reacted to the latest US inflation data. The price of Bitcoin (BTC) was up 3% to $28,270 while Ethereum retested levels above $1,800 following recent dumps for the top two coins by market cap.
Elsewhere, US stocks turned green as Consumer Price Index (CPI) data showed inflation continued to cool, with the annual rate now at its slowest pace in two years.
Gains across equities and in the crypto major caps were also replicated in the medium and small cap altcoins. A notable upside was with the price of Kava (KAVA), which was up more than 11% as of 12:20 ET.
BTC, ETH, KAVA price prediction: what next after CPI bump?
Bitcoin price had fallen below $28k this week following the large transaction volumes that hit the network and saw fees skyrocket. The congestion, attributable to the rise in BTC-20 tokens, forced crypto exchange Binance to halt BTC withdrawals on two occasions. The ensuing FUD pushed Bitcoin price lower.
Although prices are above $28k again, market experts and analysts suggest bulls are not in control yet. This is because the price remains below the key technical level of $30,000. Crypto analyst Rekt Capital noted via a tweet:
“A #BTC relief rally into $28,200 followed by a strong rejection from there would likely precede bearish continuation for price$BTC #Crypto #Bitcoin”
Ethereum is hovering above a key support level after this week’s weakness. The ETH/USD pair fell to lows of $1,800 on Monday and saw four consecutive red candles on the daily timeframe before today’s uptick.
The RSI and MACD suggest bears are still strong and bulls are likely to struggle for support at current prices. This means the $2,000 remains a key technical level and moving further off it could spell more bloodbath for ETH price. Here’s an analyst’s Ethereum price prediction?
“#Ethereum breached a key demand wall at $1,850-$1,905. Failure to regain this critical support zone may trigger a correction, potentially leading $ETH to the next significant demand area at $1,570-$1,630.”
KAVA is the native token of layer-1 blockchain Kava, which ranks as the 98th largest cryptocurrency by market. The price of KAVA hit the all-time high of $9.12 in August 2021. At current prices, its value is more than 90% down.
However, increased ecosystem activity around DeFi on the Kava blockchain has aided the double digit gains seen in the past 24 hours. It’s what pushed KAVA/USD towards the psychological $1.
The main barrier for KAVA remains the $1.12 zone, while bears could enjoy some bloodbath to $0.52.