Bitcoin and the broader cryptocurrency market are currently experiencing a significant selling pressure as they approach the Federal Open Market Committee (FOMC) meeting, which is scheduled for July 26. The BTC price has dropped to $29,000, losing its crucial support level at $29,872. The bearish outlook suggests that Bitcoin may retest the $27,500 level as it approaches the 100-day Exponential Moving Average (EMA) at $28,344.
The upcoming FOMC meeting is an important economic event that could potentially affect the price of Bitcoin, especially if the Federal Reserve (Fed) mentions a decline in the US Dollar (USD). Historically, Bitcoin and USD have moved in opposite directions when the Fed has signaled a decline in the USD. However, in recent times, the impact of the Fed meeting on Bitcoin’s price has been less significant. If Bitcoin breaks below the crucial support at $29,000, it may experience further losses and potentially reach the $27,500 support level, which represents a 5% drop from its current price.
Technical indicators such as the Relative Strength Index (RSI) and the Awesome Oscillators (AO) are showing decreasing momentum, indicating a bearish sentiment among investors. For those considering making fresh entries into Bitcoin, it might be wise to wait for the price to reach the support levels at $27,500.
Meanwhile, Ethereum (ETH) is also facing challenges as sellers become more active. The ETH price has dropped below the 200-day EMA at $1,883, reaching the significant support level of $1,824. If this support level is broken, Ethereum’s price could decrease by 7% to around $1,720 or even lower, reaching the psychological support at $1,640. However, if the bulls make a comeback, ETH may bounce back from the $1,824 support level and potentially break through the resistance at $1,959, leading to a price increase of $6 from its current levels.
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In contrast, Ripple’s XRP has experienced a partial retracement to $0.70 after a strong price rally last week. The price of XRP dropped below the support level of $0.711, but this could be a deliberate move to gather buying interest after the recent volatility. When liquidity is collected, it often stabilizes the market before the asset resumes its overall trend. As a result, XRP could potentially start moving upward again and stay within a certain range. However, if the market is highly bullish, XRP may surpass the resistance level at $0.823, representing a significant 20% increase from its current levels.
In conclusion, Bitcoin and Ethereum are facing bearish pressures ahead of the FOMC meeting, while Ripple’s XRP shows potential for an upward movement. Investors should monitor the support levels and technical indicators before making any investment decisions. It is always important to conduct thorough research and analysis before taking any actions related to cryptocurrencies. Crypto News Flash provides information for educational purposes and does not endorse or assume liability for any investment decisions made based on the information provided.
