Bitcoin and the crypto market are going up on Wednesday. The Federal Reserve (FED) announced an increase by 25 basis points. The Fed Chairman Powell said at the news conference†
We are alert to the risks of further upward pressure on inflation and inflation expectations. The Committee is determined to take the necessary measures to restore price stability. The US economy is very strong and well positioned to handle a tighter monetary policy.
Technical analysis of the best cryptocurrencies
Bitcoin
Bitcoin is trading in a range, but with recent bullish price action, with prices rising above the Tenken-sen ($39,880), Kijun Sen level at $39,828 per coin, and below another cloud called Ichimoku Kumo ($41,025) indicating what investors should look for potential buying zones.
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Bitcoin’s primary support level is $37,000 (lowest seen as of March 7), and if the price falls below this level, it could return to bear territory with potential declines to $34,000/$32,950 (January 24 low)
If the cryptocurrency closes above $41,700 today. However, there could likely be another rise to around $42,600 (March 9 high) / $45,356 (200-day EMA) / $50,000.
With the price of Bitcoin, it might be a good time to buy a dip at $40,000 with SL around $37,000 for a TP of $50,000.
Bitcoin started the day with a .4% drop | Source: BTC/USD chart of Tradinview.com
Ethereum
Ethereum has fluctuated within a tight trading range between 2,810 and $2,492 for the past week.
The ETH/USD pair has reached a high of $2,809 on the daily chart, but is currently trading around that value. The pair is trading below Tenken-sen ($2,627), Kijun-sen ($2,672) and Ichimoku Kumo cloud ($2,870), confirming the minor weak trend.
Ethereum price has strong support at $2,445, and if it falls below this level, it could confirm the bearish trend. So a dip to the around February 24 low of USD 2,300 could be ahead of us here, with potentially more downsides ahead.
Related literature | TA: Ethereum Back To Square One, Why ETH Might Rise Again
The potential for a reversal of the intraday trend is there if Ethereum closes above USD 2,850 today.
After that, it is possible for the coin to jump to $2,900/$3,000. However, the bullish trend may continue if the price breaks the $3,300 support.
With the price of Ethereum, it might be a good time to buy a dip at $2,500 with SL around $2,300 for a TP of $3,300.
XRP
The price of XRP is held above the short term (55 days EMA) and below the long term (200 days EMA). If it moves below $0.70, further bearishness would be confirmed by the pattern observations. However, a short-term trend reversal would only occur if it crosses $1.02 (high December 23).
LUNA
The price of the LUNA token is kept below the short term (55 days EMA) and above the long term (200 days EMA). If it crosses over $105, further bearishness would be confirmed by the pattern observations. However, a short term trend reversal would only occur if it crosses $75.
Bitcoin, Ethereum Resistance and Support Chart
cryptocurrency
Resistance
support
Bitcoin
R1- $42,600
S1- $37,000
R2- $43,500
S2- $34,000
R3- $46,000
S3- $30,000
Ethereum
R1- $2,775
S1- $2,445
R2- $2,850
S2- $2,300
R3- $3,160
S3- $2,150
Featured image from Pixabay, chart from tradingview.com