- Bitcoin’s price, after losing a key support level, may see a further drop of 5% to $27,500 before the FOMC meeting.
- Ethereum’s price could hit the $1,824 mark as bearish momentum increases below the 200-day EMA, while Ripple might be in for a correction after tapping into liquidity under $0.711.
As we enter a critical week, the cryptocurrency market is witnessing significant upheaval. Bitcoin (BTC), the premier cryptocurrency, is experiencing a downward trend after losing a vital support level. This has resulted in ripple effects on altcoins, notably Ethereum (ETH) and Ripple (XRP). What further amplifies the situation is the Federal Open Market Committee (FOMC) meeting, due on Wednesday, which traditionally holds a significant sway over the market sentiment, albeit the influence has been diminishing recently.
The Fall of the Titans: Bitcoin Leads the Way
Bitcoin’s price, previously supported at $29,872, plunged nearly 5% to a current trading value of $29,090. This bearish turn of events saw the 50-day Exponential Moving Average (EMA) pivot from support to resistance at $29,363. As Bitcoin continues its descent toward the 100-day EMA at $28,344, the prospect of revisiting the $27,500 level looms large.
While this pessimistic outlook coincides with the impending FOMC report, the impact of this macroeconomic event has been unpredictable. Historical trends have seen Bitcoin and the USD inversely correlated, leading some to believe that the FOMC’s decision could influence Bitcoin’s trajectory. Despite the diminishing impact, it’s important to note that the loss of the vital $29,872 support exposes Bitcoin to further dips, potentially hitting the $27,500 mark – a 5% drop from current levels.
Altcoin Response: Ethereum and Ripple in the Wake of Bitcoin’s Drop
In the aftermath of Bitcoin’s fall, Ethereum finds itself below the 200-day EMA at $1,883, which has triggered an increase in selling pressure. If the crucial support at $1,824 succumbs, Ethereum could potentially drop 7% to reach the $1,720 range, or in a worst-case scenario, bottom out around the psychological support of $1,640.
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Ripple, on the other hand, has breached the $0.711 support level in what seems to be a strategic maneuver to tap into buy-side liquidity that had accumulated post the July 13 rally. This move often precedes market stabilization, which could see Ripple bounce back to its previous range. However, if bears maintain control, Ripple might be forced to retreat towards the $0.544 level.
As the blockchain landscape prepares for the FOMC report, the future of these apex cryptocurrencies hangs in the balance. Will the report spell doom or boom for Bitcoin, Ethereum, and Ripple? Only time will tell.
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