- If the Bitcoin price rises above $59,200, it would suggest that BTC has already bottomed and establish an upward trend to the north.
- Ethereum price remains above $2,900, maintaining a bullish reversal pattern despite losing momentum.
- Ripple price moves higher as XRP bulls defend $0.5000
Bitcoin (BTC) price dipped below $60,000 on Wednesday as the market tried to get ahead of the Federal Open Market Committee (FOMC).
The Fed argued at its mid-April meeting that last quarter's inflation data created new uncertainty about whether it could cut interest rates later this year. This led the market to expect interest rates to rise, and the price of Bitcoin plummeted, dropping to around $56,000.
However, in a surprising development on Wednesday, the Fed decided to keep interest rates on hold, and improved sentiment sent Bitcoin back to the $58,000 level.
This sentiment extends to Ethereum (ETH) and Ripple (XRP) prices, which continue to hold above key support levels.
Also read: Altcoins are likely to see a rescue wave as Bitcoin prices hit the $5,000 range
Important levels to watch as Bitcoin price gradually rises
Wednesday’s drop in Bitcoin prices brought it closer to testing the bull market support band at $55,831. However, dovish news from the FOMC may have turned its fortunes around as BTC prices have been gradually increasing. If the bulls are able to push BTC back above the $59,200 level, a recovery could be confirmed, effectively meaning that BTC has bottomed at $56,552.
Meanwhile, Bitcoin price remains in the woods amid declining momentum and rising bearish sentiment, as shown by the Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators.
If the bullish market support band fails to hold as support, Bitcoin price could extend its decline towards the $52,000 threshold and, in a dire case, test the $50,000 psychological level.
BTC/USDT 1 week chart
On the contrary, all hope is not lost for BTC bulls as the RSI is well above the average level of 50 and the AO is still in positive territory. And while a reversal to support at $59,200 would solidify the recovery rally, the bearish argument will only be invalidated if BTC breaks out and closes above $72,000.
Also read: Bitcoin price regains $59,000 as Fed keeps interest rates unchanged
Ethereum price still has 25% upside potential
Ethereum price is stabilizing within a falling wedge pattern. This bullish pattern executes after a decisive breakout above the upper trend line on the 1-day timeframe.
The target objective for this pattern is a 25% rise towards $4,250, determined by measuring the height of the wedge and superimposing it on the expected breakout point. The descending wedge pattern remains viable given that Ethereum price continues to sustain above $2,900 on the 12-hour time frame.
ETH/USDT 12 hour chart
On the other hand, the falling RSI high could give the bears their way and push Ethereum price below the $2,900 buyer congestion level. Such a move would not only invalidate the bullish reversal pattern but also encourage more sell orders.
Traders looking to open long positions in ETH should wait until the RSI crosses the average 50 level, a move that has the potential for Ethereum price to rebound above the lower bound of the pattern. If the 12-hour candlestick closes above $3,212, it will be a good entry.
Also read: Ethereum tries to recover from slump amid fluctuating interest rates and accusations against SEC chairman
Ripple price prevents further downside
With XRP bulls showing a willingness to defend the $0.5000 threshold, Ripple price may remain close to $0.4952, marked by the 50% Fibonacci placeholder. The RSI has managed to hit a new low in the daily time frame, indicating that bullish momentum is increasing.
Due to increased buying pressure, XRP price may rebound with the prospect of regaining the range peak of $0.5715. In a very bullish case, profits could be seen in a ripple price increase above $0.6000, almost 17% above current levels.
XRP/USDT 1 day chart
Conversely, if the 50% Fibonacci placeholder fails to hold as support, Ripple price could fall. If the candlestick closes below $0.4782, the low will fall, indicating a possible trend reversal.
Frightened holders will likely pull the trigger, pushing the Ripple price below $0.4500, or worse, rolling it over to $0.4188. This would mean a drop of nearly 20% from current levels.
Also read: XRP holds above $0.50 as traders digest news of Ripple XRP Ledger entering Japanese market.
