The market is "holding its breath" waiting for the Fed: Bitcoin stuck in the zone of 120,000 USD, will ETH and XRP break out soon?

Bitcoin (BTC) continues to maintain a sideways trend in the price zone of 116,000 – 120,000 USD for the past two weeks, reflecting the cautious sentiment of investors before unpredictable fluctuations. Meanwhile, Ethereum (ETH) and XRP are still holding above important support levels, opening up the possibility of a bounce back in the short term. All eyes in the market are currently focused on the monetary policy meeting of the United States Federal Reserve (Fed) on Wednesday – an event that is expected to create a strong impetus for the price movements of the three leading cryptocurrencies.

Bitcoin continues to move sideways in a narrow range

In the past two weeks, Bitcoin has maintained a sideways state in the zone of 116,000 – 120,000 USD, after reaching a new all-time high of 123,218 USD on July 14. At the time of writing, BTC is trading around the mark of 118,000 USD.

If it loses the 116,000 USD mark, the decline could extend to test the (EMA) 50-day moving average at 112,735 USD. The RSI indicator is currently at 58 – above neutral but trending down, signaling weakening buying power. At the same time, the MACD indicator has shown a bearish crossover since last week, signaling a sell, while increasing red histogram bars indicate that selling pressure is prevailing.

On the contrary, if BTC can close steadily above 120,000 USD, the recovery momentum will be reinforced, opening up the opportunity to test and reclaim the peak level of 123,218 USD.

BTC 1-day price chart | Source: TradingView## Ethereum holds steady at 3,730 USD, waiting for a breakout

Ethereum tested the support zone of 3,500 USD on July 24 before bouncing back nearly 8%, closing above the important resistance level of 3,730 USD on Sunday. The bullish momentum helped ETH reach a new yearly high of 3,940 USD at the beginning of the week, but profit-taking pressure pulled the price back to retest the 3,730 USD mark. As of the time of the press, ETH is still trading slightly above this support zone.

If it holds above 3,730 USD, buyers may continue to maintain momentum, pushing the price closer to the important psychological mark of 4,000 USD. The RSI indicator on the daily chart is at 75 - exceeding the overbought threshold, reflecting strong demand but also posing a risk of correction. At the same time, the MACD has started to signal a bearish crossover, indicating that selling pressure is beginning to emerge.

In a negative scenario, if ETH closes below 3,730 USD, the correction momentum may extend to the next support zone around 3,500 USD.

ETH price chart 1 day | Source: TradingView## XRP holds steady above 2.99 USD, the bounce back opportunity is still there

XRP lost the important support level of 3.4 USD on July 23, leading to a sharp decline of 11% in just one day. However, this coin quickly found support at the Fibonacci 61.8% level at 2.99 USD on Friday and bounced back 3.43% over the weekend. Entering the new week, profit-taking selling caused the price to adjust by 3.5% on Monday, before fluctuating around 3.1 USD in today’s trading session.

If it maintains firmly above 2.99 USD, XRP may continue its bounce back, heading towards the important resistance zone at 3.4 USD. The RSI indicator on the daily chart is currently at 58 – above the neutral threshold but declining, reflecting weakening bullish momentum. At the same time, the MACD has shown a bearish crossover since last week, accompanied by increasing red histogram bars, indicating that selling pressure is still present.

On the contrary, if the closing price falls below 2.99 USD, the risk of a deep decline to the next support zone at 2.72 USD will increase significantly.

XRP price chart 1 day | Source: TradingViewLilly