Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) remain under pressure from the escalating US-Iran war, which is pushing oil prices higher and raising concerns about higher inflation. The release of the US Consumer Price Index (CPI) for February on Wednesday could increase volatility in the broader cryptocurrency market, as investor sentiment remains weak.
US CPI data in focus
US consumer prices, measured by CPI, are expected to rise 2.4% year-on-year (YoY), the same pace as January. CPI data for February is likely to be unaffected by the US-Iran war, which began on February 28. Nevertheless, investors are paying close attention to the inflation data as it could influence the US Federal Reserve (Fed)’s decision on interest rates next Wednesday.
Generally, a lower than expected CPI data could increase the likelihood of a rate cut, causing liquidity to be directed toward higher-risk assets like stocks and Bitcoin. However, the FedWatch tool shows a 99% probability that the Fed will keep interest rates unchanged.
Bitcoin slips below $70,000 again
Bitcoin fell below $70,000 at press time on Wednesday, facing downside pressure ahead of the US CPI data release. The downward sloping 50-day, 100-day and 200-day exponential moving averages (EMA) in a cluster suggest a prevailing bearish bias and act as overhead resistance for a cap recovery.
If Bitcoin clears above $70,000, the 50-day EMA at $73,024 could serve as immediate resistance.
The moving average convergence divergence (MACD) line remains above its signal line and remains in positive territory, with a mildly positive histogram suggesting underlying upside pressure. The Relative Strength Index (RSI) at 50 underlines a neutral to mild positive tone.
On the downside, the key support area for BTC is around $62,000.
Ethereum halts recovery within a range
Ethereum is trading above $2,000 at the time of writing on Wednesday, trading in the red after a two-day recovery. ETH is consolidating within the February 5 price range from $1,818 to $2,173, keeping the near-term bias neutral. However, the declining 50-, 100-, and 200-day EMAs make the broader trend skew bearish.
The MACD is rising along its signal line, with a mildly positive histogram that suggests a correction but not aggressive bullish momentum. The RSI near 48 sits close to the midline, aligning with a consolidating background.
Looking above, a resistance group emerges with the $2,173 level and the 50-day EMA at $2,224. A decisive close above this level could target the 100-day EMA at $2,555.
On the other hand, the $1,818 level continues to act as an immediate support level.
Ripple risks bearish outcome for its consolidation
As of press time on Wednesday, Ripple is trading below $1.40, approaching the consolidation range at a base of $1.3328, with an upper limit at $1.5154. If XRP slips below $1.3328, it could fall to a February 6 low of $1.1172.
The near-term bias is cautiously neutral with a downside bias. The MACD is slightly above its signal line, while the RSI at 44 has recovered from earlier lows, indicating a slight respite in bearish momentum, but not confirming a trend reversal.
On the positive side, XRP may face headwinds near the $1.5154 range, with the 50-day EMA at $1.5236.
(The technical analysis for this story was written with the help of AI tools.)
