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Bitcoin, Ethereum, XRP Forecast: BTC Under Pressure From Treasury Yields

By:
Tim Smith
Published: Sep 28, 2023, 12:27 UTC

Leading cryptocurrencies remain pressured by elevated Treasury yields. Monitor these key levels in BTC, ETH and XRP for clues on future price direction.

Bitcoin, FX Empire

In this article:

Key Insights:

  • Leading cryptocurrencies remain under pressure from elevated Treasury yields and rising oil prices.
  • Bitcoin trades within wedge pattern, support at $25,000; resistance at $27,300.
  • Ethereum trades within wedge pattern, support at $1,500; resistance at $1,735.
  • XRP oscillates within wedge pattern, support at $0.46; resistance at $0.52 and $0.54.

Bitcoin, Ethereum and XRP Forecast Video for 28.09.23

Leading cryptocurrencies failed to gain traction in Thursday’s Asian session, pressured by elevated Treasury yields and rising oil prices. Digital assets tracked stocks lower earlier in the day after the 10-year Treasury yield climbed to a fresh 16-year high of 4.63%. Risk assets, such a cryptocurrencies, typically perform poorly when yields on fixed income securities rise as investors seek out the best rate of return proportionate to the risk. Treasury Notes are considered virtually risk-free due to their backing by the U.S. government.

Oil prices reaching their highest level in 2023 also weighed on market sentiment Thursday, raising concerns about possible stagflation — an environment where the economy experiences slow growth but increasing inflation, putting upward pressure on interest rates. Earlier this week, JPMorgan CEO cautioned about such a scenario. “I am not sure if the world is prepared for 7%,” he said, per CNBC. “I ask people in business, ‘Are you prepared for something like 7%?’ The worst case is 7% with stagflation.

Below, we turn to the charts to identify levels to watch in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).

Technical Analysis: Bitcoin, Ethereum and XRP

Bitcoin

Bitcoin’s price trades toward the lower trendline of a wedge pattern, where it also finds support from the 200 SMA. The RSI remains at neutral levels, showing a lack of momentum in either direction. Further bullish upside could see bulls make a run at the wedge’s upper trendline at around $27,300. However, a breakdown below the pattern could act as a catalyst for falls to longer-term support at the closely-watched $25K level.

Chart depicting the BTC price.

Ethereum

Although Ethereum’s price sits below the 200 SMA, it looks somewhat more bullish than Bitcoin’s price in the short term with a slightly higher RSI reading and trading closer to the upper range of a wedge pattern currently in play. An upside breakout could see follow-through buying toward overhead resistance at the $1,735 late August swing high. Conversely, a failure to hold the pattern’s lower trendline could see a revisit of crucial support at $1,500.

Chart depicting the ETH price.

XRP

XRP looks relatively weak compared to Bitcoin and Ethereum, with the RSI providing a reading below the 50 threshold. Moreover, the price trades beneath the respected 50 and 200 SMAs amid decreasing volumes. A shift in momentum to the upside could see a test of the wedge pattern’s top trendline around $0.52, followed by a potential move up to key resistance at $0.54. Alternatively, a breakdown from these levels could lead a decline to the important $0.46 support area.

Chart depicting the price of XRP.

About the Author

Tim Smithauthor

Tim brings over 20 years’ of experience working at some of Wall Street’s biggest investment banks, including Goldman Sacks, Bank of America Merrill Lynch, Citigroup, and Morgan Stanley.

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