Can BTC, ETH and XRP Make New All-Time Highs After This Week’s Rate Cut?

The Federal Reserve could be getting ready to cut rates for the first time this year during its September 17 meeting of the Federal Open Market Committee (FOMC).

Hence, this is a perfect time to take a look at what’s going on with three of the most valuable cryptocurrencies in the market – Bitcoin (BTC), Ethereum (ETH), and XRP (XRP).

Data from FedWatch shows that 90% of all analysts surveyed agree that the U.S. central banks will cut the Federal Funds Rate by 25 basis points during this meeting and another equal reduction during its October gathering.

Does this set the stage for new all-time highs for these three tokens? Let’s see what their charts look like ahead of this important economic event.

BTC Bounces Off Key Support – $140K Next?

Bitcoin (BTC) has been consolidating since mid-July. Even though it made a new all-time high a few weeks after that, every spike has been followed by a strong drop.

BTC/USD Daily Chart (Coinbase) – Source: TradingView

It appears that buyers seem to prefer taking some profits off the table every time the top crypto makes a new high rather than waiting for the price to rise much further.

BTC recently bounced off its $108,500 support area and could be heading to retest the $120K level once again. The most likely catalyst for such a move may not be the rate cut itself as that’s already priced in.

Rather, any comments from Chairman Jerome Powell that will hint at larger than expected cuts, could provide the gasoline needed to push BTC to a new record.

Momentum indicators favor a bullish outlook as the Relative Strength Index (RSI) sent a buy signal upon rising above the 14-day moving average. Next stop for BTC? Maybe $140K as market conditions remain quite favorable.

Accumulation Phase Sets In – ETH Could Explode If It Rises Past $4,800

Ethereum has experienced strong selling pressure twice once it gets to $4,800. This recent struggle to climb to higher ground has also resulted in a brief period of consolidation ahead of the Fed’s interest rate decision.

ETH/USD Daily Chart (Binance) – Source: TradingView

However, the range is much tighter compared to Bitcoin as this favors a bullish outlook as investors seem to be accumulating tokens ahead of the next leg up.

The $4,000 and $3,750 levels seem to be the most relevant areas of support to watch down the road. A bearish breakout of the latest price channel shows that ETH’s previous uptrend is over.

Either a new bull run begins or the token could experience a much deeper correction if the Fed’s meeting prompts a ‘sell the news’ moment. On the other hand, if we get a move above $4,800, the upside potential for ETH could be huge as this would cause a major short squeeze.

XRP: Descending Triangle Breakout Sets the Stage for Next Leg Up

Despite its relatively muted price action in the past few days, XRP has broken a descending triangle pattern and it is currently retesting the upper bound of that formation from above.

XRP/USD Daily Chart (Bitstamp) – Source: TradingView

The token maintains a bullish structure and has typically surged after breaking out of similar patterns in the past. The $3.4 and $3.65 levels are the key resistances to watch ahead of the Fed’s meeting.

Momentum seems to be on the side of bulls as the RSI has climbed above the 14-day moving average as well and is already above the mid-line. A strong move above these levels – preferably accompanied by strong volumes – could catalyze the next leg up to $5 or so for XRP.