Bitcoin has surged past the $117,000 mark following the Federal Reserve’s decision to cut interest rates by 25 basis points, which has been interpreted as a dovish signal by investors. This increase in Bitcoin’s price is part of a broader upward trend across the cryptocurrency market, wherein altcoins such as Ethereum and XRP also show promising movements, hinting at potential breakouts toward their all-time highs.
The recent reduction in the benchmark interest rate brings it into a new range of 4.00% to 4.25%, a move approved by 11 out of 12 members of the Federal Open Market Committee (FOMC). The Fed’s accompanying dot plot suggests that further rate cuts may follow in subsequent meetings, as policymakers grapple with a softer labor market and pervasive inflation. This environment has led to a revived interest in riskier assets, notably cryptocurrencies.
Currently, Bitcoin is capitalizing on this risk-on sentiment, with technical indicators hinting at a possible breakout above the significant resistance level of $120,000. The Relative Strength Index (RSI) has rebounded from a low of 37 to 61, signaling increasing bullish momentum. Investors are closely monitoring potential buy signals through the SuperTrend indicator, anticipating movement toward Bitcoin’s recent peak of $124,474 reached in mid-August. However, profit-taking could redirect attention toward key support levels around the 50-day and 100-day Exponential Moving Averages (EMAs) at $113,804 and $111,613, respectively.
Ethereum, meanwhile, is demonstrating signs of potential recovery as it approaches a descending trendline resistance established since it reached its record high of $4,956 on August 24. The cryptocurrency’s price momentum is supported by key upward-facing moving averages, including the 50-day EMA at $4,229, the 100-day EMA at $3,786, and the 200-day EMA at $3,327. Despite minor outflows of $1.89 million from Ethereum spot ETFs, the RSI indicates room for upward movement, potentially paving the way for a breakout above the $5,000 psychological barrier.
On the XRP front, bullish sentiment has regained traction, especially with the price holding firm above the $3.00 mark. The 50-period EMA at $2.95 supports this upward trend, with the RSI climbing to 58. A breakout above the recent resistance level at $3.18 would heighten the chances of reaching the significant supply area around $3.50 and potentially the record high of $3.66.
As the cryptocurrency market reacts to the Federal Reserve’s policy decisions, traders and investors are closely watching key indicators and price levels that could signal a continuation of this bullish momentum or potential corrections in the near term.
