Jul 26, 2022 02:00AM ET
By:AnalysisWatch
Ahead of the US Federal Reserve FOMC meeting, Bitcoin, Ethereum, and Ripple prices are bracing for impact. After a week of gains, Bitcoin witnessed an increase in selling activity and a pullback in its price.
The Bitcoin price is at an inflection point: a decisive move in either direction could define the asset's trend after the FOMC meeting.
Traders are currently undecided. However, this will change with the news of an interest rate hike, as predicted by experts. Bitcoin holders are wary of this hike. The July 13 hike by the Federal Reserve caused a 5% drop in the Bitcoin price, and the asset recovered from the drop almost instantly.
Bitcoin recovered its losses, and a similar reaction is expected from the asset following Wednesday's meeting. The asset's rise to $28,000 is threatened by the rate hike.
The outlook is bullish for the second largest altcoin, XRP. Brad Garlinghouse is optimistic that the payments giant will win the trial. A victory could fuel bullish sentiment and propel XRP higher in the long term. If XRP holds above $0.34 support, it could reach $0.38.
Ethereum's price faces a hurdle at the $1700 level, and a drop in momentum could extend the altcoin's downtrend. A drop in Ethereum's price below the $1,595 level could confirm a bearish reversal in the altcoin. However, a turn above the $1,595 level is a decisive move and could propel the altcoin higher.
A daily candlestick close below $1,335 could signal a break of Ethereum's uptrend. Such a move could invalidate the bullish outlook, and Ethereum could revisit the monthly low of $877.70, which is the maximum pain scenario.
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