The crypto market saw a modest rebound on Wednesday, August 20, 2025, as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) attempted to recover from two consecutive days of losses. Traders are closely watching the release of the Federal Reserve’s meeting minutes, which could influence risk sentiment across global markets.
Market Sentiment: Fed Minutes in Focus
Market participants await clues from the Fed’s stance on interest rates. While earlier expectations favored a 50 bps rate cut in September, optimism has cooled to 25 bps after last week’s Producer Price Index (PPI) data dampened hopes.
Meanwhile, CoinGlass data shows that crypto Open Interest (OI) slipped to $195.34 billion from $201.80 billion a day earlier, signaling capital outflows as traders shift to a wait-and-see approach. In the past 24 hours, $447.98 million in liquidations hit the market, with long positions ($362.31M) facing heavier losses than shorts ($85.67M).
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Bitcoin holds above $113,000 support
Bitcoin trades around $113,000 after bouncing from an intraday low of $112,566. The move comes after a 2.89% drop on Tuesday that forced BTC below its 50-day EMA ($114,911).
🔹 If bullish momentum builds after the Fed minutes, BTC could retest the 50-day EMA at $114,911.
🔹 However, MACD remains bearish after a recent sell signal, with red histogram bars signaling selling pressure.
🔹 RSI at 42 shows weak buying interest, holding just above oversold territory.
📉 On the downside, a slip below the monthly low of $111,920 could expose the 100-day EMA at $110,498, with the next critical support at $107,245.
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Ethereum recovery eyes further growth
Ethereum is up over 3% today, bouncing from the support trendline of a rising channel on the daily chart. The move revives bullish hopes, with ETH potentially setting sights on the all-time high of $4,868.
🔹 MACD remains tilted bearish after Sunday’s sell signal.
🔹 RSI at 55 sits near neutral, rebounding from its midpoint.
📉 Failure to hold the channel support near the $4,000 psychological level could drag ETH down to the $3,941 support zone.
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XRP bulls eye 50-day EMA reclaim
Ripple’s XRP fell 6.56% on Tuesday, breaking below a confluence of the rising trendline, 50-day EMA ($2.93), and $3.00 psychological support. At press time Wednesday, XRP is up just over 1%, with bulls attempting to reclaim the 50-day EMA.
🔹 A move above $2.93 could open the door to the 38.2% Fibonacci retracement at $2.99 (from $1.90 → $3.66).
🔹 RSI at 42 shows weak momentum, while the MACD drifts closer to the zero line, reflecting rising bearish pressure.
📉 On the downside, XRP’s immediate support rests at the 50% Fibonacci retracement at $2.78.
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📊 Market Outlook
With liquidity draining from the market and sentiment leaning cautious, today’s Fed minutes (18:00 GMT) could be the catalyst for the next decisive move across BTC, ETH, and XRP. A dovish tone may boost crypto prices, while hawkish signals risk extending the recent bearish momentum.
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