Bitcoin (BTC) experienced significant volatility last week, with conflicting market signals creating bearish pressure and preventing traders from setting a clear directional trend. This led major altcoins like Ethereum and XRP to drop below crucial price points. However, following hints from US CPI and PPI data suggesting easing inflation, the market rallied, setting the stage for a potentially bullish week ahead.
Interest Rate Decision Could Revive Crypto
Despite a 2% drop last week, Bitcoin continues to face significant downside risks due to various bearish macroeconomic pressures.
Analysts in the crypto prediction markets, such as Polymarket, are optimistic about a potential pause in Federal Reserve rate hikes next week. Additionally, there is growing hope that geopolitical tensions between Russia and Ukraine might ease.
Polymarket bettors are currently pricing in a 99% likelihood of the Fed pausing rate hikes in March, with the odds of a Russia-Ukraine ceasefire reaching nearly 80%. If these events transpire, increased risk appetite could lead to more investments in Bitcoin and other cryptocurrencies, potentially triggering further upward momentum next week.
Bitcoin Price Prediction
Bitcoin bulls are trying to initiate a recovery, but they may face significant resistance between the EMA20 trend line and the $86.7K mark. Currently, the BTC price is at $84,262, having risen by 0.09% in the last 24 hours.
If the price remains above the 20-day EMA, it could indicate that the recent dip below $84K was just a bear trap. In such a scenario, the BTC/USDT pair might rise to the crucial $86.7K level and potentially extend to $93,000.
However, if the price sharply drops from this resistance zone, it would suggest that bears are in control, increasing the likelihood of a decline to the critical support level at $79,974.
Ethereum Price Prediction
Ethereum has been experiencing increased volatility around the descending resistance line, indicating growing dominance among buyers and sellers. ETH price has been consolidating below the important $2K mark and currently trades at $1,923, with a 0.2% surge in the last 24 hours.
The Relative Strength Index (RSI) is showing early signs of a positive divergence. If the price breaches the EMA50 trend line, the ETH/USDT pair could move up to the breakout level of $2,109. At this point, bears may intensify selling efforts, but if bulls maintain their momentum, the pair could advance towards the 50-day SMA at $2,530.
However, if the price fails to hold at $2,109 and falls below $1,772, it would indicate a bearish trend.
XRP Price Prediction
XRP rebounded from the $2 support level and broke above the EMA20 trend line on the 1-hour chart. Bears are trying to halt the recovery at this EMA, but continued buying pressure from bulls suggests a potential breakout above it.
If successful, the XRP/USDT pair could rise to $2.65, with a potential rally to $2.97 if it surpasses this level.
However, a significant drop from the current level would indicate bearish sentiment, potentially leading the pair to revisit the crucial $2 support.
