- Bitcoin price could rise 6% to test the $45,000 level amid rising volatility steered by broader market macroeconomics.
- Ethereum price coils up for a 7% move to the range high of $2,403 as the bulls scale a comeback.
- Ripple price could climb 10% to the supply zone as the $0.5773 support floor presents a springboard for XRP.
Bitcoin (BTC) price recorded increased volatility during the afternoon hours of the New York session. This spilled over to altcoins, with Ethereum (ETH) and Ripple (XRP) prices showing strength alongside the king of cryptocurrency. It came after the Federal Open Market Committee (FOMC) minutes with Fed chair Jerome Powell hinting at more rate cuts than he did previously. Specifically, the markets moved as the 1-year interest rate outlook fell from 5.1% to 4.6%.
Also Read: Bitcoin price shoots to $42,800 as FOMC keeps interest rates unchanged
Bitcoin price eyes a 6% climb to $45,000
Bitcoin (BTC) price has witnessed increased volatility, as the Fed kept interest rates unchanged. However, the anticipation of more rate cuts to come has inspired bullish momentum in the crypto market, with BTC standing first in line to benefit.
The Relative Strength Index (RSI) has deviated to the north, suggesting rising momentum, bolstered by the presence of the Awesome Oscillators AO) in the positive territory.
Increased buying pressure could see Bitcoin price pull north, potentially clearing the range high at $44,700 or higher, tagging $45,000, 6% above current levels. In a highly bullish case, BTC could extend to the $48,000 psychological level. Such a move would constitute a 12% climb above the current level.
BTC/USDT 1-day chart
On the flipside, if profit booking ensues, Bitcoin price could pull south, potentially losing the $40,000 support level. In the dire case, the slum could extend for Bitcoin to test the $37,800 critical support, below which BTC could spiral all the way to the $32,000 level or worse, the $30,000 psychological level.
Also Read: Bitcoin price looks insecure, thinly holds above $40,000 heading into FOMC
Ethereum price finds strength for a possible 7% climb
Ethereum (ETH) price is attempting to recover all the ground lost since the December 11 fall, getting tailwinds from the FOMC-inspired optimism. Increased buyer momentum could see Ether reclaim the support due to the midline of the ascending channel at $2,288, or higher, extending to tag the $2,403 range high.
ETH/USDT 1-day chart
On the other hand, after a 5% climb, investors who bought ETH at the $2,147 low could be tempted to book profits. The ensuing selling momentum could see Ethereum price lose the aforementioned base, potentially descending into the supply zone turned bullish breaker. A daily candlestick close below the midline of this order block under $2,075 would confirm the continuation of the slump.
This could set the tone for Ethereum price to spiral towards the $2,000 psychological level or worse, extend a leg lower to the $1,935 support.
Also Read: Ethereum leads altcoins north as Bitcoin halts amid bull trap fears
Ripple price finds strength for a 10% climb
Ripple (XRP) price has found an inflection point, pivoting around the $0.5773 support amid rising momentum. If buying pressure increases, XRP price could foray into the supply zone ranging from $0.6572 to $0.7161. To confirm the continuation of the uptrend, the price must break and close above the midline of the zone at $0.6872. This would represent a 10% climb above current levels.
This could set the tone for an extended climb, potentially going as high as the $0.8000 psychological level, or in highly ambitious cases, stretch to test $0.8505.
XRP/USDT 1-day chart
Conversely, if sellers have their say, Ripple price could descend below the critical support at $0.5773, with a break and close below this level invalidating the bullish scenario.
Also Read: XRP price risks 7% fall as Ripple lawyer names ‘the single biggest threat to crypto in the US’
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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