In the past 24 hours, the cryptocurrency market has recorded light selling pressure and a gradual increase as global investors 'hold their breath' waiting for the outcome of the U.S. Federal Reserve's monetary policy meeting, scheduled for May 6–7.
Ethereum (ETH): trading around $1,830, recovering from a low near $1,750 at the end of April.
Solana (SOL): trading at approximately $146, facing downward pressure below the important resistance level of $154.
XRP: trading near the support level of $2.15–$2.17, with the potential to drop below $2 if this support level is not maintained
The total market capitalization of cryptocurrencies has lost over $16 billion, currently holding above the support level of $2.87 trillion
🔍 Main reasons for the decline
Cautious sentiment ahead of the Fed meeting: Investors are waiting for the U.S. Federal Reserve's meeting on May 6-7. Although the Fed is expected to keep interest rates at 4.25% - 4.5%, signals about the potential for future rate cuts are being closely monitored. This uncertainty is causing investors to limit their participation in the market, especially for riskier assets like cryptocurrencies.
Pressure from weak economic data: The U.S. ISM manufacturing index is below expectations, raising concerns about the health of the economy. This negatively affects investor sentiment and reduces the attractiveness of risky assets.
Activity of 'whales': On-chain data shows that large wallets have transferred a significant amount of BTC to exchanges, indicating a potential profit-taking at current price levels. This creates selling pressure on the market.
Technical volatility and position liquidations: The market is witnessing the liquidation of long positions with a total value reaching hundreds of millions of USD in the past 24 hours, increasing selling pressure.
🧠 Market sentiment: 'Calm before the storm'
According to analysis from Crypto Rover, Bitcoin is currently experiencing a low volatility phase, often described as the 'calm before the storm'. This suggests that the market may soon enter a phase of strong volatility, especially after the upcoming Fed meeting.
🔮 Forecast for the next 24 hours
Bitcoin (BTC): Expected to fluctuate between $95,000 – $97,000. If it breaks the support level of $95,000, it could retest the $92,000 area.
Altcoin: Continued selling pressure if market sentiment does not improve.
Market sentiment: Expected to remain cautious, with the potential for strong volatility if there is more negative news from macroeconomics or monetary policy.
Significant volatility may occur after the Fed meeting, depending on Mr. Powell's policy language.
✅ Conclusion
The cryptocurrency market is facing pressure from multiple fronts, including cautious sentiment ahead of the Fed meeting, weak economic data, and profit-taking activities from large investors. In the short term, it is necessary to closely monitor global economic developments and market reactions to adjust investment strategies accordingly.
