Crypto Market Rollercoaster: Volatility Spikes After Fed, BOJ Announcements

The cryptocurrency industry experienced significant volatility last week due to crucial announcements on inflation and interest rates by the US Federal Reserve and the Bank of Japan, resulting in over $1 billion in liquidations.

Cryptocurrency Market Volatility Peaks Amidst Federal Reserve and Bank of Japan Announcements

The cryptocurrency industry experienced significant volatility last week following high-impact news from the United States Federal Reserve and the Bank of Japan regarding inflation and interest rates. The heightened volatility resulted in heavy liquidations exceeding $1 billion.

Market Overview

Bitcoin (BTC) commenced the week trading above $68,300, dipped to $60,700, and concluded at $67,158. A comparable weekly hammer pattern observed on Bitcoin's USD derivative was echoed across major altcoins, led by Ethereum (ETH).

Bitcoin (BTC) Price Targets

Despite Bitcoin dominance hinting at a potential short-term reversal, analysts anticipate a bullish candle closure at the end of the week, coinciding with the conclusion of the March candlestick. With the fourth halving event approaching in four weeks, a "buy the rumor, sell the news" scenario is deemed plausible.

Prominent crypto analyst Michaël van de Poppe suggests that Bitcoin price is likely to retest the resistance level around $70,300, following a bullish resurgence last week.

Ethereum (ETH) Price Targets

ETH price aims to reclaim $4,000 and advance towards a subsequent major target of $4,500 in the near future. Despite a stop hunt that temporarily dropped the price to $3,067, the leading smart contract platform discovered a solid support level near $3,450.

XRP Price Targets

XRP price has formed a cup with handle base pattern, which often indicates a potential for an explosive rally. Following a retest of a macro bullish breakout, XRP price could rapidly close the month trading above 70 cents.

Market Sentiment and Trading Strategy

Given that Bitcoin options worth over $1 billion are set to expire later this week, the cryptocurrency market is expected to remain volatile, a trend that has been prevalent in recent weeks.

In light of this, traders should maintain manageable positions to mitigate the risk of forced liquidations, especially during unexpected stop hunts.