Experts predict more ‘bank runs’. In this case, what will be the highly anticipated FED interest rate decision? In light of these developments, analyst Akash Girimath interprets the technical picture of BTC, XRP and ETH.
Will the Fed raise interest rates?
cryptocoin.comAs you follow from , the USA has witnessed yet another banking crisis. In this environment, experts predict that there will be more ‘bank runs’ if the Fed rate hike continues. Meanwhile, the general consensus in the market is for a 25 basis point rate hike. The same is reflected in the CME FedWatch Tool, which shows that an overwhelming majority of about 89% of respondents voted in favor of a 25 basis point rate hike.
In related news, Fed swaps point to almost two-thirds probability of a recession in June following the Fed rate hike in May. Fed Chairman Jerome Powell will make the announcement on the decision to increase interest rates on Wednesday at 18:00.
According to crypto analyst Akash Girimath, Bitcoin price shows a lack of buying pressure, which has negatively impacted some altcoin sectors, including Ethereum and Ripple. However, upcoming macroeconomic events are key for BTC in helping to frame the directional trend and put the wind in its sails. Powell’s hawk stance could result in a bearish whip in the short term, according to the analyst. But if the inflation hedging narrative blows up like it did last time, BTC and the larger crypto ecosystem will see bulls.
Bitcoin faces intense selling pressure
BTC has been struggling to break through the bearish trend between $29,630 and $30,480 for about two weeks. The last retest of this setup was over the weekend. This led to a 5.80% decrease. This bearish outlook is likely to continue until the Fed rate decision and the FOMC. It is possible that this event triggered a strong reaction for Bitcoin price.
An extreme hawk stance is technically a bearish for risky assets like Bitcoin. In the short term, BTC is likely to decline. However, if the inflation hedge narrative gains traction, traders can expect the leading crypto to rise in the long run. In such a case, it is possible for Bitcoin price to retest the $35,000 barrier.
On the other hand, the fact that the Bitcoin price does not react to the Fed rate decision or the FOMC conference and rallies will indicate a lack of confidence. In such a case, it is possible for BTC to drop to the $25,000 level.
Ethereum price remains a dummy
ETH price movements have stayed in line with Bitcoin price for obvious reasons. ETH recaptured the gains it made in the second week of April. Despite its correlation with Bitcoin, the bearish trend on the three-day chart is one of the reasons ETH price has dropped by 15% in the last two weeks.
However, if the aforementioned outlook turns into reality for Bitcoin price, it is possible for ETH to follow BTC. Thus, it is likely to label the $2,200 hurdle followed by the $2,543 blockages.
The outlook for Ethereum price remains largely dependent on Bitcoin price. The bullish scenario will be invalidated if ETH fails to hold above the $1,817 support base. In such a case, ETH is likely to slide towards levels extending from $1,478 to $1,564.
Ripple price remains at turning point
XRP price tried to stay bullish and complete the W pattern as in the chart below. However, the hard rejection at $0.532 paused the uptrend. Also, the increase in selling pressure is likely to push XRP down to retest the $0.426 support level.
If Bitcoin price starts a rally, Ethereum and Ripple price are likely to follow. In such a case, the XRP price is likely to increase by 26%. Thus, it is likely to try to surpass the $0.532 resistance level. Successfully clearing this hurdle will pave the way for XRP to retest the $0.609 barrier.
Whatever the bullish outlook for the XRP price, a failure in the SEC vs Ripple case will have a serious impact on the token’s performance. The bullish view will be invalidated if ripple price turns the $0.426 support level into a hurdle. Besides, it is possible to see the low range at $0.288, potentially down 30%.
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Waiting for FED Interest Decision for the rest of the article: What Happens to Bitcoin, XRP and ETH?