Bitcoin’s Pivotal Move and Market Sentiment
Bitcoin’s upcoming move in the next few hours holds significant importance for shifting the broader market sentiment. The prevailing market uncertainty makes it crucial for traders to avoid excessive leverage. The decision on whether to implement a 0.25% or 0.5% rate cut will have a substantial impact on the markets.
Market Uncertainty and Leverage
In times of market volatility, it’s essential to approach leverage with caution. The right decision on rate cuts can either stabilize or further shake the markets. The broader sentiment hinges on these economic decisions, making it imperative to stay informed and prepared for varying outcomes.
Analyst Insights: XRP’s Potential Breakout
Amidst the chaos, a pressing question remains: could XRP break out toward higher levels? According to analyst Cheeky Crypto, the target range for XRP was set between 59.48 and 60 cents, aiming for a double top pattern similar to Saturday’s price movement. However, XRP peaked at 59.34 cents before experiencing a pullback.
Support Levels and Impulsive Breakdown
This pullback occurred after finding support at the 50 EMA and SMA levels. Currently, there’s an impulsive breakdown indicating that XRP might be in wave four, with a structural target between 57.17 and 57.42 cents. This target range could potentially align with support at the 200-hourly EMA.
Wave Structure and Potential Patterns
Within the price structure, a five-wave drop suggests an irregular flat pattern (ABC) for wave four, overlapping with wave one, which points to a diagonal structure in wave five. The target range for the potential double top is between 59.54 and 60.16 cents.
External Factors Impacting XRP’s Rise
Despite the XRP chart displaying higher lows and lower highs, which generally indicates a bullish breakout, an immediate rise to the 75 to 85 cent range is not anticipated due to external factors.
Retesting Trendlines and Market Liquidity
The analyst also highlighted the potential loss of the 50% level, suggesting a likely retest of the lower trendline before any major breakout occurs. Although temporary stability or upward movements might happen in the coming days, overall market liquidity remains low.
Influence of Economic Indicators
This liquidity crunch, combined with external factors such as interest rates, unemployment rates, and money supply, could lead to increased selling pressure. Therefore, it’s crucial for traders to keep a close watch on these indicators to make informed decisions.
Also Check Out: XRP, FTM, or PopCat: Which Altcoin Will Hit the $1 Mark First?
