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Highlights
- The crypto market stabilized as US bond yields retreated this week.
- BTC, ETH, and XRP prices may benefit as these yields point to interest rate cuts.
- The risk is that the VIX index is rising, pointing to a sense of fear in the market.
The crypto market stabilized today as the trade war jitters eased. BTC price crawled back, rising by 6% in the last 24 hours. ETH and XRP prices rose by 7.26% and 5.6%. From a macro perspective, the falling US bond yields point to a strong crypto rebound, while the VIX index urges caution.
Bitcoin, Ethereum, Ripple Prices Stabilize as US Bond Yields Crash
The bond market is providing relief to crypto investors as yields fall across the board. The ten-year yield dropped to 4.25% from the year-to-date high of 4.80%. It has dropped below the 200-day moving average pointing to further declines ahead.
The 2-year and 30-year yields have dropped to 3.98% and 4.5%, much lower than their highest levels this year. Falling bond yields signal that the market anticipates the Fed to change its tune and deliver more cuts this year. The swap market estimates that there will be three rate cuts this year instead of the two that the Fed has hinted.
BTC, ETH, and XRP prices often do well when the Fed is slashing interst rates as it often leads to a rotation from value to growth. A good example of this is what happened in 2020 when the Fed slashed rates to deal with the pandemic.
Odds of a rate cut have risen after Donald Trump unveiled his trade war against top countries like Mexico and Canada.
The risk for cryptocurrencies is that the VIX index, a popular volatility gauge in Wall Street, has risen to $26.2, its highest level since December 19.
BTC, ETH, XRP Price Predictions
So, how will popular BTC, ETH, and XRP trade in the next few days as bond yields fall? In addition to the macro events, the three coins will react to the upcoming crypto summit, nonfarm payrolls data, and Trump’s crypto reserves news.
ETH Price Technical Analysis
Ethereum price remains under pressure almost a month after it formed a death cross pattern. It is hovering near the key support at $2,155, the lowest level in August and September last year.
The death cross points to more downside, with a potential near-term move below the $2,000 support level. A drop below that level will be a sign that bears have prevailed, and could open the door for a crash to $1,500 and below. That’s because Ethereum has already formed a triple-top pattern at $4,000.
- Support levels: $2,000, $1,800, and $1,500.
- Resistance levels: $2,500, $2,850, and $3,000.
XRP Price Technical Analysis
XRP is at a significant risk of a bearish breakdown as long as it is below the key level at $2.9180. This level is crucial because it coincides with the left and right shoulders of the head and shoulders pattern. This risk will be more pronounced if the XRP price crashes below the neckline at $1.9735. A move above the shoulders section will point to further gains, potentially to the YTD high.
- Support levels: $2, $1.97, and $1.5387 (61.8% retracement level).
- Resistance levels: $2.9, $3.4, and $4.
BTC Price Technical Analysis
BTC has found support at the 200-day moving average and the key point at $88,908, the neckline of the double-top pattern at $108,230. Its daily chart presents a blurry outlook, meaning that the coin may ultimately breakout in either direction.
Therefore, the ideal way is to identify key support and resistance levels. More gains will be confirmed if the Bitcoin price rises above $95,000 followed by $100,000. One analyst warned that Bitcoin price may struggle to hit $100k soon. On the other hand, a crash below the support at $78,308 (last week’s low), will point to more downside to $73,500 (March 2024 high).
Frequently Asked Questions (FAQs)
1. Will BTC, ETH, and XRP prices rise as US bond yields fall?
2. What is the most viable BTC price prediction?
3. What is the top XRP price forecast?
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