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

• Recovery gathers pace in Bitcoin above $81,000, with the forthcoming Fed interest rate decision now in focus.
• Strengthening momentum indicators support Ethereum’s advance for a second consecutive day.
• With the MACD hinting at a buy signal, XRP bulls seek to reclaim control of the trend.

Sentiment across the cryptocurrency market has improved on Wednesday as Bitcoin (BTC) resumes its climb above $81,000 ahead of the Federal Reserve’s (Fed) forthcoming interest rate decision.

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

Can crypto sustain its advance ahead of the Fed decision?

Against a backdrop of mounting inflation worries, high Oil and energy prices and persistent geopolitical tensions in the Middle East, the Federal Open Market Committee (FOMC) is due to announce its interest rate decision later on Wednesday.

Traders will look to Fed Chair Kevin Warsh's post-meeting press conference for indications of the policy outlook. The central bank is widely expected to leave interest rates on hold, with CME’s FedWatch Tool assigning a 91% probability to that outcome.

With inflation still above the 2% long-term target, persistent price pressures remain a key challenge for the Fed. Warsh has repeatedly stressed the regulator’s resolve to reduce inflation, even as 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,” before adding, “Then the US midterms land next Tuesday.”

Technical analysis: Can Bitcoin extend its recovery?

A broadly neutral short-term outlook accompanies Bitcoin’s consolidation at $81,494 in the upper half of its recent Bollinger Bands range. Underlying support comes from the 50-day Exponential Moving Average (EMA) at $80,831, above which the price is holding. However, Bitcoin remains slightly below the middle Bollinger band at $81,941, indicating that upward momentum is still tentative.

Bullish pressure has yet to gain the upper hand: the Relative Strength Index (RSI) is near neutral at 48, while the Moving Average Convergence Divergence (MACD) remains below zero.

A sustained move above the first resistance at the middle Bollinger band, around $81,941, would bring the upper band near $84,056 into focus as the next obstacle. Immediate support, meanwhile, comes from the 50-day EMA around $80,831. Should the consolidation give way to a deeper decline, the lower Bollinger band near $79,826 would become relevant, with buyers expected to show firmer interest there.

Technical analysis: Can Ethereum bulls regain ground?

Despite a second consecutive day of gains, Ethereum retains a cautiously bearish outlook at $2,374. Its spot price remains beneath both the middle Bollinger band around $2,421 and the 50-day EMA near $2,452.

Sellers nevertheless lack complete control, despite the weak broader structure. The pair is holding marginally above a rising support trendline near $2,369, as well as above the lower Bollinger Band at approximately $2,305.

An RSI reading near 41 points to limited bullish conviction. Although the MACD is still negative, its narrowing negative readings indicate that bearish momentum is beginning to ease rather than gather pace.

For Ethereum to advance towards the 50-day EMA near $2,452, it would first need a sustained break above initial resistance at the middle Bollinger Band around $2,421. The upper Bollinger Band around $2,537 presents a more distant hurdle that could halt rallies. On the downside, the reclaimed trendline area near $2,369 provides immediate support, followed by the lower Bollinger Band around $2,305. A daily close below the latter would likely leave ETH vulnerable to a deeper correction.

Technical analysis: Can XRP bulls protect crucial support?

As bulls strengthen their hold and seek to regain control of the trend, XRP is trading above $1.33. Near-term gains remain constrained, however: the price is just below the 20-day middle Bollinger band around $1.33 and beneath the 50-day EMA near $1.36. Despite a slightly positive MACD reading, this leaves the broader outlook mildly bearish.

Consolidation appears more likely than a sharp breakout, with the RSI around 46 signalling a lack of directional momentum. The established descending resistance trendline, projected from above $1.70, still shapes the medium-term technical picture.

The middle Bollinger band at $1.33 is the first resistance to watch. A daily close above this pivot would bring the 50-day EMA near $1.36 into view, before the upper Bollinger band around $1.41 becomes the next upside target. On the downside, the lower Bollinger band near $1.26 offers the first significant technical support. A breach would likely revive selling pressure and clear the way for a deeper retracement within the prevailing downtrend channel defined by the descending resistance line.

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