Crypto Market Plummets Amid Tariff Tantrum, FOMC Uncertainty

The crypto market is currently experiencing significant volatility due to the ongoing tariff tantrum in the United States. Bitcoin (BTC) is trading below $85,000, while Ethereum (ETH) and Ripple (XRP) are both in a bear market. The crypto fear and greed index has dropped to below 20, indicating a high level of fear among investors. As the Federal Open Market Committee (FOMC) decision approaches, the market is bracing for potential impacts on crypto prices.

The financial market is often driven by fear and greed, and the current tariff tantrum is a prime example. The implementation of import tariffs by Donald Trump has raised concerns about a potential recession, with major financial institutions expressing worries about the economic impact. A recession could be beneficial for risky assets like BTC, ETH, and XRP, as it would likely prompt the Federal Reserve to cut interest rates. The FOMC meeting will provide more clarity on interest rate expectations for the year, which could significantly influence crypto prices.

Bitcoin's price has formed a double-top pattern at $108,300 and has since crashed below the neckline at $89,000. The formation of a death cross, where the 200-day and 50-day weighted moving averages (WMA) have flipped, suggests a bearish trend. The Percentage Price Oscillator (PPO) has also moved below the zero line, indicating further downward pressure. Bitcoin is likely to continue falling, targeting the key support at $73,630. A bullish forecast for BTC would be invalidated if the price rises above the key resistance at $89,000.

Ethereum's price has been in a downward trend, forming a triple-top pattern at $4,000. It has dropped below the key support at $2,115, the neckline of this triple top. The Average Directional Index (ADX) has risen to 40, indicating strong momentum in the downward direction. Ethereum is likely to continue falling, with the next support level at $1,500. A move above the resistance at $2,115 would invalidate the bearish outlook.

Ripple's price has shown some recovery in recent days after retesting the important support at $1.9614, which was the neckline of a head and shoulders pattern. This recovery suggests that bulls are resisting further downward movement. However, if the price moves below the neckline, it could lead to more downside, potentially to $1 or below. A move above the right shoulder would invalidate the bearish prediction for XRP.

In summary, the crypto market is under significant pressure due to the tariff tantrum and the upcoming FOMC decision. Bitcoin, Ethereum, and Ripple are all facing bearish trends, with key support levels to watch. The market's fear and greed index indicates a high level of fear, and the FOMC decision could provide some clarity on interest rate expectations, which will be crucial for crypto prices.