Crypto Market Waits for February US CPI Data

The crypto market continues to face headwinds, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) remaining in a bear market.

The crypto market continues to face headwinds, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) remaining in a bear market. No good news, including the recent crypto summit, and Strategic Bitcoin Reserve (SBR) has helped the industry.

This week will be relatively calm in terms of major crypto-related news. As such, the price action will likely depend on macro events. The most notable of these events will come out on Wednesday when the US publishes closely-watched consumer price index (CPI) data. So, will this inflation report lead to a rebound of BTC, XRP, and ETH this week?

Crypto Market Awaits February US CPI Data

The US will release the February inflation data, which will provide more details on the inflation situation in the country. Data compiled by TradingView shows that economists expect the report to show that consumer inflation eased a bit in February.

The headline CPI is expected to soften from 3.0 percent in January to 2.9 percent in February. At the same time, the core CPI, which excludes volatile food and energy components, will improve from 3.3 percent to 3.2 percent. A slowdown in inflation is a good thing for the crypto market as it will boost the case for Federal Reserve interest rate cuts.

Indeed, indicators like the US bond yields and the US dollar index (DXY) point to cuts later this year.

The US CPI data comes a few days after the country published the latest nonfarm payrolls data, which showed that the labor market softened in February. The unemployment rate rose from 4.0 percent to 4.1 percent during the month. As such, a combination of falling inflation and rising unemployment rate would signal more cuts.

However, these inflation numbers may not majorly impact BTC, ETH, and XRP prices because they are for February, a month when the US had not implemented tariffs against Canadian and Mexican goods. Analysts expect that inflation will be sticky for a while as companies boost prices to offset the tariffs.

BTC, ETH, XRP Price Predictions

Technical analysis is a good way to predict what will happen to the crypto market after the US publishes its CPI data.

BTC Price Technical Analysis

The daily chart points to further BTC price retreat. It formed a double-top chart pattern at $108,330, and has now crashed below the neckline at $89,223. Bitcoin is also about to form a death cross pattern, as the 200-day and 50-day Weighted Moving Averages (WMA) near their crossover.

The most likely scenario is where Bitcoin crashes and retests the key support at $73,750 and then bounces back. This price is notable since it was the highest level in March last year.

ETH Price Technical Analysis

The weekly chart points to further ETH price crash. It formed a triple-top pattern at $4,035, and has now plunged below the neckline at $2,153. In most cases, crossing the neckline validates the bearish view of the double or triple-bottom pattern and points to further downside.

More Ethereum price crash will become valid if it crashes below $1,910, the 61.8 percent Fibonacci Retracement level. A move the 200 WMA at $2,500 will invalidate the bearish ETH price forecast.

XRP Price Technical Analysis

Technicals suggest that the Ripple price has formed a head and shoulders pattern. The head is at $3.4160, while the neckline is at $2. It has moved below the right and shoulders level at $3.

XRP is now attempting to move below the 200 WMA. Such a crash will point to further XRP price crash to the 61.8 percent retracement at $1.6215, followed by 78.2 percent retracement at $1.1341. This view will become invalid if the coin rises above $2.50.