Schlagwort: crypto business

• Bitcoin consolidates ahead of key US dollar data
• All eyes are on the Federal Reserve
• January jobs report to offer more clues about a possible recession in the United States

Bitcoin hovers around $23k after rallying in January. It currently consolidates, mostly because investors await news from the United States economy. 

Today is the month’s last trading day, but the trading week is still young. Starting with tomorrow, three major economic events may move Bitcoin and, with  it, the entire cryptocurrency market: 

• Federal Reserve’s decision
• Non-Farm Payrolls
• Average Hourly Earnings

Federal Reserve’s monetary policy decision

This is a big week for the US dollar, thus, a big week for Bitcoin too. On Wednesday, the Federal Reserve of the United States presents its monetary policy decision, which keeps markets in tight ranges. 

No one wants to take a bet ahead of such an important economic event, even though the market seems to expect a 25bp rate hike. But it is more about nuances and the message that the Fed sends rather than what it actually does. 

Therefore, the press conference following the FOMC Statement is more important for financial markets than the actual interest rate decision. 

Non-Farm Payrolls

Two days later, the Non-Farm Payrolls data for January will be published. The degree of the upcoming recession in the United States is still unclear, or if there will be one. In any case, the jobs data will make it clear what to expect in the months ahead from the largest economy in the world. 

Average Hourly Earnings

Inflation may have peaked, but do not expect to ease rapidly. Yesterday’s data from Europe showed renewed upside pressures, and one should not be surprised to see something similar in the United States

Together with the jobs data, the Average Hourly Earnings (AHE) will shed light on the trend for US wages. Upside pressures should translate into higher inflation in the months ahead, thus potentially moving the dollar and the overall financial markets.

The post 3 events to move the cryptocurrency market by Friday appeared first on CoinJournal.

• Ripple gained over 16% YTD
• While the momentum is positive, it has yet to overcome resistance
• $0.3 – $0.5 are pivotal levels for XRP/USD

This is the first important trading week of the year as three central banks (Federal Reserve, European Central Bank, and Bank of England) prepare to release their monetary policy decisions. Out of the three, the Fed’s decision is critical, as it affects the US economy and has indirect effects worldwide.

The consensus is that the Fed will increase the funds rate by 25bp this time. The risk is that it will be more aggressive – either by hiking 50bp or by delivering a hawkish message. Because markets are forward-looking, the impact of what the Fed does/says will be on the spot.

For the cryptocurrency market, the US dollar’s direction has mattered a lot lately. As the greenback weakened at the start of the trading year against its peers, it also lost ground against leading cryptocurrencies.

Take Ripple, for example. It gained +16.21% YTD, much of it on behalf of the dollar’s weakness.

What does technical analysis say about where the price might go next?

XRPUSD chart by TradingView

Ripple remains bearish while below resistance

Ripple followed Bitcoin in January and bounced from the lows. However, the bias remains bearish unless it can climb above resistance.

Three things support the bearish case.

First, the price action for the past several months is bearish, in the sense that it remained below resistance, despite the recent recovery in cryptocurrency assets.

Second, the horizontal support around $0.3 looms large. A break there puts a descending triangle in focus, and technical traders will hunt the measured move pointing to much lower levels.

Finally, since its inception, Ripple has only made a series of lower highs. No matter what the fundamentals showed, Ripple wasn’t able to climb above the previous lower high. This is bearish from a technical standpoint and deserves more attention from crypto bulls as it may signal more downside down the road.

Both for Ripple and the other leading cryptocurrencies.

The post Ripple price prediction ahead of the Fed meeting appeared first on CoinJournal.