Bitcoin is poised for significant fluctuations following the Federal Reserve’s interest rate decision, with predictions suggesting that its price could remain trapped within the larger range of $107,000 to $124,474 for an extended period. As of now, Bitcoin (BTC) faces selling pressures around the $117,500 mark, though there’s a positive sign as bulls are attempting to keep the price above $115,500. The upcoming Deciding meeting of the Federal Open Market Committee (FOMC) is anticipated to bring heightened volatility to the cryptocurrency markets.
The CME FedWatch tool indicates a 94% probability of a 25-basis point rate cut, with a smaller 6% possibility anticipating a more aggressive 50 basis-point reduction. Analysts remain divided on Bitcoin’s short-term trajectory. One analyst suggested that Bitcoin could gradually climb towards its all-time high, while another projected a potential drop to $104,000 or even $92,000 before it eventually rallies to new heights.
Tom Lee, co-founder of Fundstrat and chairman of BitMine, expressed optimism regarding Bitcoin and Ether (ETH), foreseeing a “monster move” in the next three months, attributing this potential surge to the Fed’s anticipated rate cuts and positive seasonal trends.
In the technical analysis of Bitcoin, it has been hovering between the 50-day simple moving average (SMA) of $114,320 and the resistance level of $117,500 recently. Given the upward trend of the 20-day exponential moving average (EMA) and a supportive Relative Strength Index (RSI), analysts suggest there’s a potential for Bitcoin to breach the $117,500 resistance, which could propel it toward $120,000 and subsequently to $124,474. Conversely, if the price dips below the 20-day EMA, it may indicate a sustained range between $107,000 and $117,500 for a while longer.
In the altcoin space, Ether has retraced to the 20-day EMA of $4,450, viewed as a strong support level. A sharp uptick from this point could signal solid demand, pushing ETH towards the overhead resistance zone between $4,770 and $4,957, with a eventual target of $5,500. However, a drop below the 20-day EMA could see Ether testing the 50-day SMA at $4,288, and potentially $4,060.
XRP’s situation is somewhat precarious, as buyers struggle to maintain momentum above the moving averages. If sellers push the price below the 20-day EMA of $2.97, it could trigger a decline to the strong support level at $2.73. Any break under this level could result in a sharper decline to as low as $2.20.
In contrast, BNB continues to show strength, moving towards the psychological barrier of $1,000. If BNB can maintain above its 20-day EMA of $897, it may beat resistance and push towards $1,090. However, if it drops below the EMA, further dips could lead to the 50-day SMA at $847.
Solana exhibits a shallow pullback at its 20-day EMA ($220), which is critical support. A bounce could signal continued bullish sentiment, potentially leading to a rally to $260, whilst a break below the EMA indicates a possible downturn to $197.
Dogecoin has pulled back to the $0.26 level, seeking support. The inability to show a strong bounce suggests weak buying pressure, but a rebound from the 20-day EMA ($0.24) could reignite bullish moves towards $0.35 and $0.44.
Cardano is caught in a symmetrical triangle pattern, indicating uncertainty. A decline below its support could pull it down to $0.68, while a rise above could signal a bullish trend, leading to resistance levels of $1.02 and subsequently $1.17.
Other altcoins like Hyperliquid, Chainlink, and Sui are also experiencing varied trends, with the potential for upwards moves contingent upon maintaining certain support levels.
As the cryptocurrency market navigates these shifting dynamics, traders are encouraged to stay informed about pivotal technical levels to adapt their strategies accordingly.
