- FOMC minutes hint at a possible halt in rising interest rates, affecting Bitcoin and altcoins negatively.
- Technical indicators for BTC, ETH, and XRP suggest potential downturns, but recovery is possible if bulls regain control.
The recent publication of the Federal Open Market Committee (FOMC) minutes has sent ripples through the cryptocurrency market, with Bitcoin (BTC) and several altcoins flashing red. The document revealed a division among FOMC members, with some believing that the era of rising interest rates might be reaching a plateau.
FOMC’s Influence on Cryptocurrency Markets
This news comes at a time when the global financial community is closely monitoring inflation’s trajectory and its impact on investment strategies.
Bitcoin’s Technical Outlook
Bitcoin’s price is showing signs of strain, struggling to maintain support above the critical $51,335 mark. Technical indicators suggest a potential downturn, with a break below this level possibly triggering a sell-off towards the psychological $48,000 threshold.
In a worst-case scenario, BTC could plunge into the $45,556 to $46,691 range, a significant retracement from its current standing. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are both signaling bearish momentum, indicating that the market could be preparing for further declines.
Despite the bearish indicators, there’s still hope for the bulls. If buying pressure resumes, Bitcoin could pivot, reclaiming the $52,985 resistance as support and potentially marching towards the $55,000 milestone.
In an optimistic scenario, BTC could even test the $60,000 level, representing a 17% increase from current prices. To explore the bullish outlook for BTC prices, you can dive deeper via the YouTube video below.
Ethereum and Ripple’s Market Response
Ethereum (ETH) and Ripple (XRP), like Bitcoin, are feeling the pressure from the FOMC’s minutes. Ethereum’s price is facing a potential 5% drop to $2,770, according to the RSI’s sell signal and the bearish divergence shown by the MACD.
Ripple’s situation appears more precarious, with its price trapped in a descending parallel channel and facing resistance from key moving averages. A continued bearish trend could see XRP fall to $0.5001, with a further slide to $0.4734 not out of the question.
However, not all is lost for Ethereum and Ripple. A resurgence of bullish sentiment could propel these cryptocurrencies to overcome their immediate resistances. For Ripple, this means breaching the $0.6000 psychological barrier and possibly extending gains to $0.6421, a nearly 20% increase from current levels.
At the time of writing, the price of XRP had fallen 2.81% in the last 24 hours, fell to price of $0.5411. And also, this represents an decrease of 2.17% over the past 7 days.