Cryptocurrency markets traded in a narrow range on Thursday as investors weighed rising geopolitical tensions in the Middle East alongside a hawkish US Federal Reserve outlook, keeping risk appetite subdued despite Bitcoin holding above a key support level.
Bitcoin (BTC) remained above $64,000, although upside momentum continued to face resistance. Ethereum (ETH) stayed above the $1,900 mark, while XRP traded sideways as traders watched for a potential breakout toward $1.10.
Middle East tensions keep investors cautious
Market sentiment remained under pressure after the United States launched what it described as a series of strikes on strategic locations in southern Iran, including Bandar Abbas, Kish and Qeshm Island. Separately, reports suggested a US-linked vessel caught fire following a suspected drone attack at an Egyptian port, although officials have not confirmed the cause.
The heightened tensions supported oil prices, with West Texas Intermediate (WTI) crude holding above $82 per barrel, adding to concerns over inflation and broader market uncertainty.
Crypto sentiment remained weak, with the Fear & Greed Index staying in the Fear zone at 28, slightly lower than the previous day’s reading of 29. Analysts said continued caution among investors could slow any meaningful recovery heading into August.
Fed reinforces higher-for-longer policy outlook
The US Federal Reserve kept interest rates unchanged at 3.50% to 3.75%, in line with market expectations. However, the meeting highlighted a more divided policy stance, as three members of the Federal Open Market Committee backed a 25-basis-point rate increase.
Fed Chair Kevin Warsh reiterated the central bank’s commitment to restoring inflation to its 2% target, signalling that restrictive monetary policy could remain in place for longer. The comments reinforced expectations that elevated borrowing costs may continue to limit liquidity flowing into risk assets, including cryptocurrencies.
Bitcoin remains below key resistance levels
Bitcoin traded around $64,259, continuing to face resistance below its major exponential moving averages (EMAs). The 50-day EMA near $64,922 remains the first barrier, followed by the 100-day EMA at $67,521 and the 200-day EMA around $73,060.
Technical indicators point to a cautious outlook. The MACD remains in negative territory, indicating lingering selling pressure, while the Relative Strength Index (RSI) near 50 reflects neutral market momentum.
Immediate support is seen around $61,034, where the SuperTrend indicator provides a key technical floor. A sustained move above the 50-day EMA would be needed to improve the short-term outlook and potentially pave the way for a test of higher resistance levels.
Simon-Peter Massabni, Business Development Head at XS.com, said Bitcoin’s resilience comes despite ongoing geopolitical uncertainty, adding that tighter monetary conditions continue to limit capital flows into digital assets.
Ethereum and XRP consolidate
Ethereum continued to trade above $1,900, maintaining a neutral-to-positive outlook after holding above its 50-day EMA and key support levels. However, the cryptocurrency remains capped by resistance near its 100-day EMA around $1,932, while the 200-day EMA near $2,166 represents a longer-term hurdle.
The RSI around 57 suggests mild bullish momentum, although the MACD has turned slightly negative, indicating buyers may face resistance during the current consolidation phase.
Meanwhile, XRP remained range-bound, with traders monitoring price action for a potential breakout above $1.10 as broader market sentiment continues to dictate short-term direction.
