by Sana Bukhari
All leading cryptocurrency prices stay down because Bitcoin BTC, Ethereum ETH, and Ripple XRP remain below support levels. The crypto financial system weakened more because of the latest crypto summit and Strategic Bitcoin Reserve (SBR) launch.
Market behaviour depends mainly on major economic data without new crypto industry announcements. The United States CPI data for February 2023 will deliver important information on Wednesday. The market needs to see if BTC, ETH, and XRP prices will rise after investors receive the latest US inflation report.
The US CPI data will show important changes in US price growth. Recent TradingView data suggests that professional economists predict consumer inflation dropped in February. The heading CPI number should drop to 2.9% during February while core CPI should shift down from 3.3% to 3.2%.
BTC Market Awaits Federal Reserve Rate Cut Decision
Lower inflation makes it likelier that the Federal Reserve will reduce rates which enhances cryptocurrency market conditions. Market data indicates that US bond rates and the US Dollar Index show likely interest rate reductions happening this year.
New data about employment showed softer job market conditions so experts at CPI evaluated this development. When February arrived the United States employment figures grew from 4.0% to 4.1%. The decrease in inflation combined with unemployment growth will increase pressure on the Federal Reserve to reduce interest rates.
The CPI information probably won’t affect BTC, ETH, and XRP market value much since it covers inflation developments that occurred earlier than the US border tax changes in February. Businesses will keep raising prices to deal with the latest tariff policies which may lead to ongoing inflation during the coming period.
Data about inflation and consumer prices helps forecast future changes in major digital currency values through technical market analysis.
BTC Faces Bearish Signals Amid Key Support Test
BTC’s daily chart shows more possibilities of dropping in value. BTC produced a double-top shape at $108330 then cut through its support line to $89223. The 200-day and 50-day Weighted Moving Averages (WMAs) of Bitcoin are about to cross below each other (death cross) which typically heralds a bear market.
The price of Bitcoin will probably test $73,750 once again as support levels which blocked its rise in March 2023. The market may rebound from this point onward to generate a path for better times ahead.
Our general market analysis of Ethereum shows possible price reductions in the future. After three peaks at $4035 Ethereum broke out from its pattern below the $2153 support line. By breaking through this bearing level analysts acknowledge the current market downturn trend.
The market implies ETH needs to rise above $1910 to keep returning to positive value. Preserving the 200-day moving average line of $2,500 represents enough optimistic momentum to reject the bearish outlook.
XRP has developed a head and shoulders pattern whose head stands at $3.4160 and its support wall runs at $2. The latest drop of ETH under its right shoulder support level at $3 suggests continued downward movement.
The currency is probing the 200 WMA as its next target. A drop below this zone would direct the price downward towards $1.6215 and potentially deepen to $1.1341 in the future. When XRP reaches $2.50 as its support level the bearish forecast will no longer be valid.
US CPI data will serve as an essential guide for BTC, ETH, and XRP market movement. Economic activities outside crypto markets can make short-term rate cut benefits to digital assets uncertain.
Tech tools show BTC, ETH, and XRP should continue dropping as traders pay attention to their main barrier levels. A strong market recovery relies on good economic growth combined with positive investor opinions in upcoming weeks.
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