The equity markets in Europe and the United States are seeing a sea of red as traders continue to sell risky assets due to the geopolitical situation. Bitcoin (BTC) and several major cryptocurrencies are also witnessing profit-booking after the recent rise. 

Another reason that could be keeping investors on the edge is the upcoming Federal Open Market Committee (FOMC) meeting on March 16. A statement from Fed Chair Jerome Powell on March 2 highlighted that the central bank is likely to hike rates this month.

Fitch Ratings chief economist Brian Coulton expects core inflation to remain high in 2022 and the Fed to boost the “Fed fund rate to 3% by the end of 2022.”

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Daily cryptocurrency market performance. Source: Coin360

ExoAlpha managing partner and chief investment officer David Lifchitz said that Bitcoin may remain soft in the short term because a rate hike by the Fed technically “strengthens” the U.S. dollar, and hence “weakens” Bitcoin. However, he does not expect a drastic impact on Bitcoin.

Several uncertainties could cap the rallies to the upside in the short term. Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical support and resistance levels.