- Bitcoin price wants to rise, but negative flows for spot BTC ETF are fermenting market sentiment.
- Ethereum price could drop to $3,160 amid legal tussle and question of whether ETH is a security.
- XRP flipping $0.6677 into support could attract enough momentum to drive Ripple price to a new range high above $0.7440.
Following the Federal Open Market Committee (FOMC) meeting and press conference on Wednesday, Bitcoin price has shown strength. Fed Chair Jerome Powell’s remarks were dovish, just not enough to supersede the bearish sentiment that comes with dwindling flows from the spot Bitcoin exchange-traded fund (ETF) market.
Well, it was fun while it lasted
— Eric Balchunas (@EricBalchunas) March 21, 2024
“It is so over,” said ETF specialist James Seyffart. His colleague Eric Bahlchunas at Bloomberg added, “it was fun while it lasted.”
The ETF analysts from Bloomberg Intelligence have sort of thrown in the towel after multiple days of plateaued flows. If such days turn into weeks, the narrative could be completely different.
Also Read: Bitcoin price could hit a new ATH, but there’s a caveat to this bounce
Fermented sentiment in Bitcoin market
While Powell’s remarks inspired hope in the BTC market, negative flows have fermented investor sentiment and now Bitcoin price recovery rally is on the balance. Growing overhead pressure due to the Simple Moving Averages (SMAs) on the H3 time frame threatens the upside potential for BTC as traders continue to de-risk.
Bitcoin price could drop toward the $61,038 support as buying pressure continues to dwindle. This can be seen with the falling Relative Strength Index (RSI) that has already executed a bearish crossover below its signal line (yellow band).
In the past, in all instances where the RSI crossed below the signal line on the H3 time frame while below the 50 mean level, Bitcoin price responded with an extended fall. Reinforcing this outlook, the Moving Average Convergence Divergence (MACD) is also about to flip bearish into negative territory.
BTC/USDT 3-hour chart
Conversely, if sidelined investors or those looking to capitalize on the correction step in, Bitcoin price could push north, going as far as to overcome resistance due to the 200-day SMA at $68,574, or higher, breach the $69,000 threshold.
A candlestick close above the aforementioned level would encourage more buying pressure, sending BTC to the $73,777 peak or higher.
Also Read: Bitcoin price attempts recovery ahead of inaugural BTC Investor Day in NYC
Ethereum price suffers the weight of legal troubles
Ethereum (ETH) price is stuck below the 50% Fibonacci placeholder and could consolidate within this zone for a while as the network combats state authorities. Both technicals, the RSI and the MACD flash bearish, with the former breaking sub-50, while the MACD is moving below its signal line.
Ethereum price could revisit the $3,158 base for a liquidity sweep before the next leg up, especially if the Bitcoin price continues to show weakness.
ETH/USDT 1-day chart
However, if the bulls can push Ethereum price above $3,625, a daily candlestick close above this level would encourage more buy orders, giving Ether the price gusto necessary to continue north, likely as far as to retake its peak above the $4,000 psychological level. Such a move would denote a climb of about 20% above current levels.
Also Read: BlackRock to launch tokenized fund on Ethereum as battle for ETF intensifies
Ripple price eyes $0.7000
Ripple (XRP) price is consolidating within the upper zone of the ascending parallel channel. The climbing RSI level demonstrates that momentum is rising. The momentum indicator’s deviation above 50 could instigate a fluke rally as it records a bullish crossover above its signal line (yellow band).
If XRP price manages a candlestick close above $0.6677, skeptics would join in. The ensuing buying pressure could propel the remittance token’s price to $0.7000. In a highly bullish case, Ripple price could extend the gains to the range high at $0.7440, around 16% above current levels.
XRP/USDT 1-day chart
On the other hand, if early profit takers pull the trigger, cashing in on the ground covered in the last two days, Ripple price could pull back. A daily candlestick close below $0.5853 would invalidate the bullish thesis.
Also Read: XRP holders lose interest, shed holdings as Ripple and SEC seal lawsuit proceedings
