The cryptocurrency market is experiencing a downturn, with Bitcoin (BTC) and several altcoins displaying a bearish trend following the release of minutes from the Federal Open Market Committee (FOMC). The revealed concerns among members regarding the potential plateauing of interest rates and uncertainties regarding inflation have impacted the overall sentiment.
Bitcoin‘s price, in particular, is displaying signs of a possible downward movement, breaking below the critical support at $51,335. Technical indicators suggest that if BTC records a candlestick close below this level, it could potentially revisit the $48,000 psychological level. In a more severe scenario, Bitcoin might test the order block between $45,556 and $46,691.
The Relative Strength Index (RSI) has already signaled a sell-off by crossing its signal line, while the Moving Average Convergence Divergence (MACD) is showing signs of dipping and may cross below its signal line. The MACD histogram bars are also weakening, indicating a loss of bullish momentum.
However, if bullish sentiment prevails, Bitcoin could recover and turn $52,985 into support, aiming for levels around $55,000 or, in an optimistic scenario, the $60,000 psychological level. Such a move would represent a 17% climb from current levels.
Ethereum (ETH) is mirroring Bitcoin’s response, with a sell signal on the RSI. Traders following this indicator could witness a 5% drop in ETH price to the $2,770 support, aligning with the midline of the ascending parallel channel. The weakening MACD histogram bars and a topping-out MACD further support a bearish outlook. Conversely, a bullish recovery might propel Ethereum above the $3,033 range high.
Ripple (XRP) is grappling with overhead pressure within a descending parallel channel, compounded by the 200 and 100-day Simple Moving Averages (SMAs) at $0.5643 and $0.5835 levels respectively. The recent RSI sell signal suggests a potential 7% drop to $0.5001, last tested on February 7. If this level fails to hold, XRP could slip to the $0.4734 support.
Bullish momentum, however, could result in Ripple‘s recovery, pushing the token above the 200 and 100-day SMAs, with the $0.6000 psychological level as a target. In an optimistic scenario, XRP might surge to test the $0.6421 blockade, representing nearly a 20% increase from current levels. Investors are closely monitoring these developments as the cryptocurrency market navigates uncertainties in the broader economic landscape.
