Crypto Today: Bitcoin, Ethereum, XRP rebound as Fed decision approaches

• Above $81,000, Bitcoin’s recovery gathers pace ahead of the forthcoming Fed interest rate decision.
• Strengthening momentum indicators support Ethereum’s second consecutive day of gains.
• With the MACD hinting at a buy signal, XRP bulls seek to reassert control of the trend.

Above $81,000 again on Wednesday, Bitcoin (BTC) is extending its advance and bolstering sentiment across cryptocurrencies as markets await the Federal Reserve’s (Fed) next interest rate decision.

Following Bitcoin higher, Ethereum (ETH) is approaching $2,400, with bullish investors appearing to add to their exposure. Improving momentum indicators are also supporting Ripple (XRP), which is inching higher above $1.33.

Cryptocurrencies climb as markets await Fed decision

Against a backdrop of heightened inflation worries and high oil and energy prices, the Federal Open Market Committee (FOMC) is due to deliver its interest rate decision later on Wednesday. Persistent geopolitical tensions in the Middle East remain part of that backdrop.

CME’s FedWatch Tool puts the probability of unchanged interest rates at 91%, in line with widespread expectations of a hold. Attention will therefore centre on Fed Chair Kevin Warsh's press conference after the meeting, where traders will look for indications of the policy outlook.

Inflation remains above the 2% long-term target, leaving persistent price pressures among the Fed’s main challenges. Warsh has repeatedly stressed the regulator’s resolve to lower inflation, although the US economy continues to show resilience.

In emailed commentary, Ian Weisberger, Co-founder and CEO of CoinRoutes, said: “This is a nervy week for crypto. In the space of three days, traders face a Fed rate decision, results from the biggest tech companies in the world, and around $12 billion worth of bitcoin bets expiring on Friday,” adding, “Then the US midterms land next Tuesday.”

Technical analysis: Bitcoin seeks to extend its recovery

At $81,494, Bitcoin is consolidating within the upper half of its recent Bollinger Bands envelope, leaving the short-term outlook broadly neutral. Underlying support comes from the 50-day Exponential Moving Average (EMA) at $80,831, above which the price is holding. However, trading just below the Bollinger middle band at $81,941 points to only tentative upward momentum.

Bullish pressure has yet to take the upper hand: the Relative Strength Index (RSI) stands near its neutral line at 48, and the Moving Average Convergence Divergence (MACD) remains below zero.

Around $81,941, the Bollinger middle band provides the first resistance level. A sustained move above it would bring the upper Bollinger band near $84,056 into focus as the next obstacle. Support is initially provided by the 50-day EMA around $80,831. Should the pullback deepen, attention would turn to the lower Bollinger band near $79,826, where buyers would be expected to show firmer interest if the consolidation gives way to a downward move.

Technical analysis: Ethereum bulls regain ground

A second successive day of gains has taken Ethereum to $2,374, though the bias remains cautiously bearish. Its spot price is still beneath both the Bollinger middle band around $2,421 and the 50-day EMA near $2,452.

Despite that broader weakness, sellers have not secured full control. The pair remains just above a rising support trendline near $2,369 and clear of the lower Bollinger Band at roughly $2,305.

With the RSI near 41, bullish conviction remains limited. The MACD is still negative, but its narrowing negative readings indicate that bearish momentum is beginning to ease rather than gather pace.

The Bollinger Band middle line around $2,421 presents the first resistance, and only a sustained break above it would clear a path towards the 50-day EMA near $2,452. Further up, rallies could run into a more demanding hurdle at the upper Bollinger Band around $2,537. Initial support sits in the reclaimed trendline area near $2,369, followed by the lower Bollinger Band around $2,305. A daily close beneath that latter support would likely leave ETH vulnerable to a deeper correction.

Technical analysis: XRP bulls hold crucial support

Trading above $1.33, XRP is seeing bulls strengthen their position in an effort to regain control of the trend. Near-term progress is nevertheless constrained: the price remains just beneath the 20-day Bollinger middle band around $1.33 and below the 50-day EMA near $1.36. As a result, the broader bias is still mildly bearish, even with a slightly positive MACD reading.

At around 46, the RSI points to momentum lacking a clear direction, favouring consolidation over a forceful breakout. Meanwhile, the established descending resistance trendline, projected from above $1.70, remains the dominant feature of the medium-term structure.

At $1.33, the Bollinger middle band is the first resistance to overcome. A daily close above that pivot would bring the 50-day EMA near $1.36 into view, with the upper Bollinger band around $1.41 the subsequent bullish objective. The lower Bollinger band near $1.26 provides the first significant technical support. Losing that level would likely revive selling pressure and open the way for a deeper retracement within the prevailing downward channel defined by the descending resistance line.

(The technical analysis of this story was written with the help of an AI tool. Know more.)