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- As Bitcoin approaches the 100-day EMA at $28,344, the bearish outlook suggests a potential retest of the $27,500 level.
- Ripple’s XRP could potentially start the upward journey after collecting enough liquidity at $0.70.
Bitcoin and the broader cryptocurrency market have come under strong selling pressure just ahead of the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, July 26.
Earlier today, the BTC price collapsed all the way to $29,000 losing its crucial support at $29,872. Bitcoin’s recent movement caused it to change the 50-day Exponential Moving Average (EMA) support at $29,363 into resistance (shown in red). As Bitcoin approaches the 100-day EMA at $28,344 (shown in green), the bearish outlook suggests a potential retest of the $27,500 level.
The negative outlook is unfortunate, especially with the upcoming FOMC report, an important economic event that could affect Bitcoin’s price if it goes as expected. In the past, when the Federal Reserve (Fed) mentioned a decline in the US Dollar (USD), Bitcoin and USD often moved in opposite directions.
This time, the Fed meeting could still influence Bitcoin, although lately, it has had less impact. If Bitcoin loses the crucial support at $29,000, it may experience further losses and possibly reach the $27,500 support level. This could mean a 5 percent drop from its current price.
Both the Relative Strength Index (RSI) and the Awesome Oscillators (AO) are showing decreasing momentum, which is a positive sign for the bears. For investors willing to make any fresh entry, they can consider waiting up to the support levels of $27,500.
Ethereum Price Drops, A Pullback In XRP Possible
Ethereum (ETH) is facing challenges as sellers have become more active. The ETH price dropped below the 200-day EMA at $1,883 on the four-hour chart. This selling pressure caused ETH to reach the important support level of $1,824, which has been significant for several months. If the support at $1,824 is broken, Ethereum’s price could decrease by 7 percent to around $1,720 or even lower, reaching the psychological support at $1,640.
On the positive side, if the bulls make a comeback, Ethereum’s price could bounce back from the $1,824 support, just like what happened in late June and early July. In that case, ETH might recover the lost ground and potentially break through the resistance at $1,959. This could lead to a price increase of $6 from its current levels.
On the other hand, Ripple’s XRP has registered a partial retracement to $0.70 after a solid price rally last week. The price of Ripple (XRP) has dropped below the support level of $0.711. This seems to be a deliberate move to gather buying interest after the volatility that followed the rally on July 13. When liquidity is collected, it usually stabilizes the market for a few days before the asset resumes its overall trend.
As a result, Ripple’s price could potentially start moving upward again and stay within a certain range. However, if the market is highly bullish, XRP could go even higher, breaking through the resistance level at $0.823. This would represent a significant 20 percent increase from its current levels.
