Bitcoin, Ethereum, XRP Brace for Volatility Ahead of US CPI Data
Bitcoin, Ethereum, and XRP witness increased volatility as they hover around key support levels. The market awaits the US CPI data release, which could drive major price swings.
By Tylt Editorial Team
Bitcoin price stabilizes around $82,700 after a sharp 5.52% recovery.
Ethereum remains weak near $1,900, with risks of further correction.
XRP holds support at $1.96, showing potential signs of recovery.
Bitcoin price has experienced a notable recovery after dipping below the 200-day Exponential Moving Average (EMA) earlier this week. The leading cryptocurrency rebounded 5.52% after finding support at $78,258, currently hovering around $82,700. Despite this bounce, BTC remains vulnerable to further declines if it fails to hold above this support level. If the correction continues and BTC closes below $78,258, it could extend the downtrend to test $73,072. However, a push above $85,000 would confirm a bullish resurgence.
The Relative Strength Index (RSI) on Bitcoin’s daily chart shows a reading of 40, bouncing off the oversold level of 30, indicating that bearish pressure is easing. A move above the neutral 50 level would be required for BTC to confirm a sustainable recovery.
Ethereum, on the other hand, is showing signs of weakness. The second-largest cryptocurrency saw a 7.69% decline on Monday but recovered 3.13% the following day, maintaining support around $1,905. At present, ETH remains around this level, and a close below it could push prices lower to the next support at $1,700. The daily RSI for Ethereum is at 32 and trending downwards toward its oversold threshold of 30, suggesting that bearish momentum remains strong. If ETH manages to recover, its next resistance level stands at $2,359.
XRP is displaying signs of resilience despite recent market turbulence. The token retested its daily support at $1.96 on Tuesday, triggering a 7.40% rebound, and currently trades around $2.20. The RSI for XRP is at 44, trending upwards, indicating weakening bearish momentum. If the token continues its recovery, it could test the $2.72 resistance level. However, failure to hold above $1.96 could drive the price down to its February 3 low of $1.77.
As the crypto market awaits the US CPI data release, traders should prepare for heightened volatility. Bitcoin, Ethereum, and XRP remain at critical junctures, where any significant movement could determine their short-term direction. Investors will closely watch for signals that could either confirm a sustained recovery or extend the current correction phase.
