The stock and crypto market continued selling off on Monday as fear spread globally. Bitcoin (BTC) price crashed to $75,000, while Ethereum (ETH) retested the crucial support at $1,500 for the first time since 2023. Ripple (XRP) plunged below a key make-or-break level. This BTC, ETH, and XRP price prediction explains why a new Goldman Sachs call may help to boost these prices.
New Goldman Sachs Recession Call Could Boost the Crypto Market
Analysts at Goldman Sachs have boosted their recession probability from last week’s 35% to 45%, citing the ongoing trade war between the US and the rest of the world. The economists now expect the US economy to grow by 0.5% this year, down from 1% in their previous estimate.
These analysts blamed the tariffs, which have led to major boycotts of American products, and policy uncertainty from the US. They noted that many business leaders were unsure about where the US policy will be in the coming months since Trump is known of changing his mind on key issues.
Goldman Sachs’ outlook is largely bearish on the United States, which explains why futures tied to the Dow Jones, Nasdaq 100, and S&P 500 have dropped and erased over $5.5 trillion in value in the last few days.
However, a contrarian case can be made for the top tokens like BTC, ETH, and XRP. In their note, these analysts said that the rising recession odds will push the Fed to cut rates by 130 basis points, higher than the previous 105 bps. These rate cuts may help the US economy and boost risky assets like stocks and the crypto market.
BTC Price Analysis: Could Crash to $70K and Then Rebound
Bitcoin price has dropped in the past few months, moving from the year-to-date high of 109,300 to a low of 74,730, its lowest level since November 10. It dropped slightly below the critical support level at $76,823, partially invalidating the small double-bottom pattern, whose neckline was at $89,000.
The BTC price is also attempting to form a death cross pattern as the gap between the 50-day and 200-day moving averages narrows. Therefore, the most likely Bitcoin price forecast is bearish, with the initial target being at $70,000.
However, on the positive side, the coin was about to retest the key support at $73,827, the highest point in March last year. This pattern is known as a break-and-retest and often leads to a rebound. As such, a crash to $70k will be confirmed if it loses the support at $73,827.
ETH Price Analysis: Triple-Top Points to More Downside
The daily chart reveals that the ETH price has collapsed in the past few months, and the situation is getting worse. It has continued to move below key support levels, including the psychological point at $1,500. Ethereum price also moved below the support at $2,120, a key part of the triple-top chart pattern. It fell below $1,530 on Monday, the lowest level in October last year.
The depth of the triple-top pattern is about 42%, and the same distance from the neckline is $1,200. This means that the ETH price forecast may see it dropping to $1,200 before bouncing back when the Fed starts to cut rates.
XRP Price Prediction: At Risk After Losing Key Support
The XRP price may be about to crash further before rebounding. That’s because the coin plunged below the 50% Fibonacci Retracement level at $1.9213. It also moved below $2, the neckline of the head and shoulders chart pattern. The distance between the head and the neckline of this pattern is about 47%, giving the target Ripple price at $0.9342, which is a few points below the 78.2% retracement level.
Will Fed Rate Cuts Boost Bitcoin, Ethereum, and Ripple prices?
Historically, periods of extreme doom are followed by substantial gains. A good example of this is during the dot-com bubble, Global Financial Crisis, and the COVID-19 pandemic. This means that crypto coins like BTC, ETH, and XRP may rebound over time. Before that, they will likely go through substantial volatility.
The post BTC, ETH, XRP Price Prediction: Goldman Sachs Call Could Boost Crypto Values appeared first on CoinGape.
