FOMC Meeting Minutes May Influence Bitcoin and Ethereum Prices: Predictions for the Week Ahead

    Bitcoin (BTC) and Ethereum (ETH), the two biggest cryptocurrencies in the world, continue to hold above the $24,000 and $1,600 marks, respectively. However, they experienced a slight decline this morning, with Bitcoin falling from $25,000 to $24,000. The crypto market continues to fluctuate, investors are keeping a close eye on the upcoming Federal Open Market Committee (FOMC) meeting minutes, which are set to be released this week.

    The release of the Federal Open Market Committee (FOMC) minutes on Wednesday could have an impact on the price of Bitcoin. As the FOMC sets the monetary policy in the United States, any hint of a shift in this policy could affect financial markets, including the cryptocurrency market. In a recent speech at the Economic Club of Washington, Federal Reserve Chair Jerome Powell discussed the ongoing disinflation process and expressed confidence in the Fed’s ability to lower inflation to their targeted rate of 2%.

    While Powell’s response to the strong January jobs report did not indicate a change in the central bank’s approach to future rate increases, he cautioned that sustained strong labor data could lead to a higher terminal level of the Fed funds.

    Bitcoin’s market capitalization is approximately $450 billion, while Ethereum’s market capitalization is approximately $180 billion. Other cryptocurrencies such as Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH) also contribute to the total cryptocurrency market capitalization.

    Cryptocurrency prices are highly volatile and can fluctuate rapidly in response to market events and investor sentiment. The FOMC meeting minutes release this week could cause price swings in the cryptocurrency market, as investors react to any news that could impact the monetary policy in the United States.

    Bitcoin Price 

    In technical terms, Bitcoin has been trading sideways and has maintained a narrow range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair is currently at $25,200. Should the price break out above this level, it could potentially reach the $26,000 mark.

    However, leading technical indicators such as the RSI and MACD are showing divergence. The RSI is presently above 50 in a buying zone, while the MACD is forming histograms below 0 in a sell zone. This type of divergence is often indicative of investor indecision.

    Should Bitcoin’s price fall below the current support level of $23,750, the next support level would be at $22,850, which is determined by the 50% Fibonacci retracement mark.

    Investor focus in the upcoming week will be on the release of the FOMC meeting minutes on Wednesday, which could potentially impact Bitcoin’s price action.

    Ethereum Price 

    After finding support near the $1,650 level, the ETH/USD pair has seen an increase in bullish momentum. Ethereum has formed a symmetrical triangle pattern on the 2-hour timeframe, indicating indecision in the market, and has kept the price within a choppy range.

    If Ethereum experiences a bullish bounce-off above the $1,650 level, it could potentially reach the $1,720 mark. Additionally, a bullish breakout above the $1,720 level and the symmetrical triangle pattern could drive further bullish price action. However, the price levels of $1,760 and $1,800 are likely to act as resistance levels.

    On the downside, Ethereum has support levels at approximately $1,650 or $1,625. The RSI and MACD are showing divergence, similar to the analysis of Bitcoin’s price, indicating that investors may be waiting for a significant news event such as the release of the FOMC meeting minutes to determine the next market trends.

    Stay in the Loop

    Get the daily email from Crypto Navigator that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...