Bitcoin is poised for significant price fluctuations in the aftermath of the Federal Reserve’s upcoming interest rate decision, yet experts suggest it may remain bound within a substantial range of $107,000 to $124,474 for the foreseeable future. As traders position themselves ahead of the Federal Open Market Committee (FOMC) meeting, many altcoins, with the exception of BNB, have experienced pullbacks, signaling a cautious approach among investors.
Currently, Bitcoin (BTC) is encountering selling pressure around the $117,500 mark, although bulls are making an effort to maintain the price above the critical support level of $115,500. The cryptocurrency market anticipates increased volatility following the Fed’s announcement regarding interest rates. Data from the CME FedWatch tool indicates a remarkable 94% likelihood of a 25-basis point rate cut, with a smaller 6% predicting a more aggressive cut of 50 basis points. Analysts’ forecasts for Bitcoin’s near-term price action vary widely: some suggest a gradual climb towards previous all-time highs, while others warn that it could plummet to as low as $104,000 or $92,000 before any potential recovery.
Tom Lee, co-founder of Fundstrat and Chairman of BitMine, expressed optimism on CNBC, highlighting that the Fed’s reduction of interest rates, along with strong seasonal trends, could catalyze a significant rally for both Bitcoin and Ether (ETH) over the next three months.
In assessing potential price movements for Bitcoin, analysts point out several key support and resistance levels. Bitcoin has been trading between the 50-day simple moving average (SMA) at $114,320 and the $117,500 resistance level. The upsloping 20-day exponential moving average (EMA) at $113,919 and a positive relative strength index (RSI) bolster the chances for a breakthrough above $117,500. Should that occur, the BTC/USDT pair might ascend to $120,000 and eventually approach $124,474. Conversely, a decline below the 20-day EMA could keep Bitcoin confined to the $107,000 to $117,500 range, with bearish sentiment intensifying if it closes below $107,000.
Ether has also witnessed a pullback, recently testing the 20-day EMA at $4,450, which is seen as a pivotal support level. A sharp rebound from this point could signal robust buying interest, pushing the ETH/USDT pair past the resistance range of $4,770 to $4,957. Successful navigation through this barrier could see Ether surge to $5,500. However, a drop below the 20-day EMA might lead to further declines towards the 50-day SMA at $4,288 and $4,060, with bearish control solidifying on a close beneath $4,060.
For XRP, buyers are striving to hold the price above key moving averages but face challenges in initiating a strong upward bounce. If sellers succeed in driving the price below the 20-day EMA at $2.97, the XRP/USDT pair may fall to solid support at $2.73. Defending this level is critical, as a breach would form a descending triangle pattern that could see prices decline to $2.20. Conversely, a rise above $3.20 would indicate renewed bullish control, potentially leading to a rise towards $3.40.
BNB continues to progress towards the psychological threshold of $1,000, a sign of strong bullish momentum. However, as it approaches this level, sell pressure may intensify. If BNB falls below the 20-day EMA at $897, it could drop to the 50-day SMA at $847. On the other hand, maintaining above the EMA suggests sustained demand and a likely continuation of the upwards trend toward $1,090.
In Solana’s case, the recent shallow pullback suggests that buyers are not yet abandoning their positions in anticipation of a further upward move. The 20-day EMA ($220) is a critical support level; a rebound from here could lead to a rally towards $260. However, any significant drop below this EMA indicates increasing bearish sentiment which may target the 50-day SMA at $197 and potentially lower.
Dogecoin’s recent performance shows it attempting to find support at the $0.26 level, but its inability to generate a strong rebound indicates weak bullish activity. Monitoring the 20-day EMA at $0.24 is essential; a strong recovery here could see the price challenge $0.31 and potentially rise to $0.35 and $0.44. Should it dip below this EMA, a drop towards $0.22 and solid support at $0.21 looms.
For Cardano, the price remains within a symmetrical triangle pattern, reflecting uncertainty in market direction. A decisive move below the support line could drag the ADA/USDT pair down to $0.68, while a break above the resistance line could initiate a rally towards $1.02, followed by resistance around $1.17 to $1.25.
Hyperliquid is experiencing a pullback that finds support near the 20-day EMA ($51.05), implying buying on dips. If bulls can push the HYPE/USDT pair above the resistance at $57.44, a surge toward $64.25 could ensue. Conversely, slipping below $49.88 might indicate a retreating bullish stance, opening the door to declines towards the 50-day SMA at $45.74.
Chainlink’s recovery has stalled at $25.64, revealing active selling at higher levels. If sellers lead the price below the 50-day SMA at $22.40, buyers will likely defend this support zone vigorously. A bounce from this level could position the pair to retest $25.64 and potentially reach as high as $27, where significant selling pressure is anticipated.
Sui has had a tumultuous time, having briefly pierced the downtrend line before retreating below it. Buyers are trying to stabilize the price at current moving averages, but sustained selling pressure could push it below $3.45 towards more solid support at $3.26, while further declines below $3.11 could lead to a drop to $2.80. A rally above $3.89 is essential for signaling a swing in control away from the bears.
As the cryptocurrency landscape evolves, traders are advised to remain alert and informed, considering the inherent risks in investment and trading decisions.
