US Triple Witching Event Could Send Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH) Prices Crashing

Crypto market today remains calm as the focus among investors shift from this week's Federal Reserve decision to the upcoming triple-witching event

The crypto market today remains calm as the focus among investors shifts from this week’s Federal Reserve decision to the upcoming triple-witching event. This is a crucial quarterly event when stock options worth over $4.7 trillion will expire.

This crypto prediction explores how this event will affect coins like Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH).

Major events tested the stock and crypto market this week. The Federal Reserve delivered its second interest rate decision of the year, while the SEC ended its Ripple lawsuit. Donald Trump also delivered a pre-recorded speech at a crypto conference.

The next test for crypto prices will happen on Friday when the Triple Witching event happens. This is an important event that happens each quarter when options expire. In this week’s event, the expectation is that options volume worth between $4.5 trillion and $4.7 trillion will expire.

This witching event explains why American stocks largely erased some of the gains made after the FOMC decision. That happened since more activity related to roll-outs, position closing, and roll-downs happened.

Stock tends to drop ahead of the triple-witching event. Dow Jones index futures dropped by 140 points, while those tied to the S&P 500 and Nasdaq 100 fell by 0.50%.

The US stock market futures expiry has an impact on cryptocurrencies like BTC, ETH, and XRP because of their close correlation.

BTC Price Technical Analysis

There is a risk that the BTC price is on the verge of a bearish breakdown ahead of the triple-witching event. This case is emerging because Bitcoin price has been rising gradually this week, moving from a low of $76,402 this month to $83,890.

The recent rebound has led to the formation of a rising wedge pattern. This is a popular bearish sign made up of two ascending and converging trendlines.

As these two lines approach their confluence, the BTC price will likely experience a bearish breakdown towards $76,400. The bullish Bitcoin forecast will become invalid if it moves above $89,240, the neckline of the double-top at $108,300.

ETH Price Technical Analysis

The ETH price is also at risk of a breakdown as it has formed a bearish flag pattern. This pattern comprises a vertical line and a rectangle pattern, often leading to a strong breakdown.

The price of Ethereum has fallen below the key support at $2,120, the neckline of the triple-top pattern at $4,000. These patterns, together with the death cross that occurred in February, indicate the possibility of an ETH price crash to $1,500.

XRP Price Technical Analysis

The daily chart shows that the XRP price has lost momentum following the SEC's closure of the Ripple case. This signals that XRP remains susceptible to further downside as it failed to break above $3. A move above this level is crucial to invalidate the head and shoulders pattern formed this year.

Therefore, there is a chance that the Ripple price will experience a bearish breakout.

The $4.7 trillion US stock options expiry, also known as triple-witching, occurs once per quarter and usually leads to market volatility, which could impact crypto prices, which are currently vulnerable after forming bearish patterns.

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