- Bitcoin price fails to overcome the $29,630 to $30.480 bearish breaker despite multiple attempts.
- Ethereum price undoes April’s second-week gains as it subscribes to BTC’s weakness.
- Ripple price is likely to retest the $0.422 support level as weakness penetrates altcoins.
Bitcoin price shows a lack of buying pressure that has negatively affected some sectors of altcoins, including Ethereum and Ripple. But the upcoming macroeconomic events are key in helping frame the directional bias for BTC and put wind in its sails.
A hawkish stance from the Federal Reserve Chairman, Jerome Powell is likely to cause a whiplash leaning bearish in the short term. But if the inflation hedge narrative pops like the last time, BTC and the larger crypto ecosystem will see a bullish outlook.
Read more on Fed’s interest rate decision and FOMC conference: Week Ahead: Important week for Bitcoin’s 2023 rally
Bitcoin price faces intense selling pressure
Bitcoin price has been struggling to overcome the $29,630 to $30.480 bearish breaker for nearly two weeks. The recent retest of this setup was over the weekend which resulted in a 5.80% slide to the downside.
This bearish outlook is likely to continue until the Federal Reserve’s interest rate decision and the Federal Open Market Committee (FOMC) conference scheduled for May 3. This event should trigger a strong response for Bitcoin price.
An overly hawkish stance is technically bearish for risk-on assets like stocks and Bitcoin. In the short term, BTC might slide lower, but if the inflation hedge narrative gains traction traders can expect the big crypto to rally in the long run.
In such a case, Bitcoin price could eye a retest of the $35,000 hurdle.
BTC/USDT 1-day chart
On the other hand, if Bitcoin price fails to react to the Fed’s interest rate decision or FOMC conference and rally, it will indicate a lack of confidence. In such a case, BTC could crash down to the $25,000 level.
Ethereum price remains a puppet
Ethereum price moves have remained in lockstep with Bitcoin price for obvious reasons. ETH undid the gains it raked up over the second week of April. Despite its correlation with Bitcoin, the bearish divergence on the three-day chart is one of the reasons why Ethereum price crashed down by 15% in the last two weeks.
However, if the above mentioned outlook comes to reality for Bitcoin price, the smart contract token is likely to follow BTC’s lead and tag the $2,200 hurdle, followed by the $2,543 blockades.
ETH/USDT 3-day chart
While the outlook for Ethereum price remains largely dependent on Bitcoin price, a failure to hold above the $1,817 support floor will invalidate the bullish scenario. In such a case, ETH could slide down to inefficiency, extending from $1,478 to $1,564.
Ripple price remains at inflection point
Ripple price tried to remain bullish and complete the W-pattern as seen in the chart below. However, sever rejection at $0.532 level has paused the uptrend. Furthermore, a spike in selling pressure could likely knock XRP price down to retest the $0.426 support level.
If Bitcoin price kick-starts a rally, Ethereum and Ripple price are likely to follow its lead. In such a situation, XRP price could shoot up by 26% and attempt to overcome the $0.532 resistance level. A successful flip of this hurdle will open the path for the remittance token to retest the $0.609 barrier.
XRP/USDT 3-day chart
Regardless of the bullish outlook for XRP price, a failure in the SEC vs. Ripple lawsuit could have a serious implications on the token’s performance. If XRP price flips the $0.426 support level into a hurdle, it will invalidate the bullish outlook and potentially crash by 30% to tag the range low at $0.288.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.