Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Traders sweat as PCE numbers could bear upbeat surprise

• Bitcoin price flirts with a break lower that could see a 10% devaluation. 
• Ethereum price is in the middle of a pennant and due for a breakout with PCE as a catalyst. 
• XRP price is still stuck as hardliners remain reluctant to give up support at the 55-day SMA.

Bitcoin price, Ethereum and other cryptocurrencies are gearing up for a significant economic data point out of the US this Friday. The Personal Consumption Expenditures index or PCE is the preferred instrument from the Fed to measure the underlying inflation in the US. After an upbeat surprise out of Europe this week, where final inflation numbers were revised higher, the US PCE could also reveal an uptick.

Bitcoin price to tank with $21,000 as support for defending against strong PCE data

Bitcoin (BTC) price is set to close this week with a loss after all as Bitcoin price has sold off following the spike on Thursday. Markets remain focused on the one-year anniversary of the war in Ukraine and keep pricing in a risk premium for further escalation. With a very selective club allowed to rally under these conditions, cryptocurrencies have fallen out of grace for the time being.

BTC is facing another challenge with the PCE numbers coming out on Friday. This data point is preferred for the Fed to decide on penciling in a 25 or 50-basis-point hike in March. With the final inflation numbers from Europe as a guide, BTC will crack under the pressure of a higher PCE number and could tank as far as $21,969 with the 55-day Simple moving Average (SMA) as a speed bump and the monthly pivot just above $21,000 as a sandbox to catch the correction.

BTC/USD  daily chart

A further decline in inflation would translate into a 25-basis-point hike from the Fed in March, meaning a dovish outcome. Expect under that event for risk assets to advance higher. Cryptocurrencies will see bulls reentering the action and ramping up prices as Bitcoin price could go as far as $26,000 to break the monthly R1 resistance level.

 

Ethereum price sees traders flip a coin and go for a breakout on Friday

Ethereum price (ETH) has a more technical approach as price action trades daily in a much narrower range. Meanwhile, bulls and bears respect the boundaries for both upside and downside, which paints a pennant formation on the daily chart. The bulls look rather weak here with plenty of tests on the upside and only one secured test on the downside.

ETH has more chance for a bearish breakout due to the number of rejections on the topside and entry opportunities bears have had thus far. The Relative Strength Index (RSI) confirms that with its downtrend since its peak in January. Expect a moderate breakout lower toward $1,500 and $1,440 as a circuit breaker in the form of the 200-day SMA.

ETH/USD daily chart

Expect some whipsaw move on the back of the PCE data set to come out on Friday morning. Once the dust settles and reveals that inflation is still on target, a bullish opportunity will open up. Expect a shot through $1,688, with bulls attempting to reach near $1,800 before or during the weekend.

 

XRP price will move on inflation data, but will PCE be enough to move the needle substantially?

Ripple (XRP) price is still stuck between the 55-day and the 200-day SMA and does not seem able to trade away from either one of them that easily. Expect to see a move lower today with the PCE deflator hanging over the market this Friday as a big event. Although the data is rather second-tier, it will determine the outcome of the Fed meeting in March.

XRP could slip that support below from the 55-day SMA and take out all the stops placed just below there from the bulls that entered at or just above the same 55-day SMA. A quick nosedive move could be seen toward $0.37 as those stops will trigger a domino effect. If the PCE numbers point to a firm pickup in inflation, a catalytic drop toward $0.34 could be in the cards, as $0.37 does not hold enough strength and support.

XRP/USD daily chart

The bond segment will be the element to watch in the markets for the coming days. Often traders forget to look at this asset class as it can paint a clear picture of what will happen in the near future. This Friday in ASIA-PAC and European trading hours, bonds rose in price (yields dropped), which confirms that markets are moving back toward the Goldilocks scenario, which would mean XRP traders could expect a breakout higher above $0.40 toward $0.42 by next week.

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