The crypto market remains on edge this week, as the tariff tantrum in the United States continues. Bitcoin (BTC) price is below $85,000, while Ethereum (ETH) and Ripple (XRP) are stuck in a bear market. The crypto fear and greed index has dropped to below 20. So, what next for BTC, ETH, and XRP prices as the tariff concerns remain ahead of FOMC decision?
Crypto Market Drops as the Tariff Tantrum Continues Ahead of FOMC
The financial market is usually driven by fear and greed. At times, this market is characterized by tantrums, especially when the market is fearful about key events. One of the top tantrums in the market was the taper tantrum in 2013 when the Fed started to unwind its quantitive easing program.
The stock and crypto markets are now going through a tariff tantrum after Donald Trump implemented import tariffs. The fear is that these tariffs will lead to a recession, with companies like PIMCO, Goldman Sachs, and JPMorgan have all expressed concerns about these tariffs and raised their tariff odds.
A recession would be a good thing for BTC, ETH, XRP, and other risky assets as it would push the Fed to slash interest rates. These assets normally thrive when the Fed is cutting rates.
The FOMC will likely provide more information about what to expect this year in terms of interest rates. A sign that it will deliver more cuts, as the US bond yields are signaling, will be a good thing for crypto prices.
BTC, ETH, XRP Analysis Amid Tariff Concerns
Bitcoin and most cryptocurrencies will continue to react to the latest tariff news from the US. So, what next for BTC, ETH, and XRP prices?
BTC Price Technical Analysis
The daily chart shows that the BTC price formed a double-top pattern at $108,300, and has crashed below the neckline at $89,000. It has also formed a death cross as the 200-day and 50-day weighted moving averages (WMA) have flipped each other.
Bitcoin price has also moved below the major S/R pivot point of the Murrey Math Lines tool. The Percentage Price Oscillator (PPO), a unique form of the MACD indicator, has moved below the zero line.
Therefore, the price of Bitcoin will likely continue falling as sellers target the key support at $$73,630, the highest level in March last year. The bullish BTC price forecast will become invalid if the coin rises above the key resistance at $89,000.
ETH Price Technical Analysis
The ETH price has continued falling this week, accelerating a trend that started a few months ago when it formed a triple-top pattern at $4,000. It has dropped below the key support at $2,115, the neckline of this triple top.
The Average Directional Index (ADX) has risen to 40, meaning the momentum is continuing. That is a sign that the Ethereum price will likely continue falling, with the next point to watch being at $1,500. A move above the resistance at $2,115 will invalidate the bearish view.
XRP Price Technical Analysis
The daily chart shows that the price of Ripple has bounced back a bit in the past few days. This recovery happened after it retested the important support at $1.9614, a key level since it was the neckline of the hand and shoulders pattern.
As such, this is a sign that bulls are resisting it moving below the neckline, which would lead to more downside, potentially to $1 or below. A move above the right shoulder will invalidate the bearish XRP price prediction.
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