Bitcoin, Ethereum register strong recovery after Fed rate decision

Crypto market overview: In the last 24 hours, the crypto market experienced strong volatility until the Federal Reserve’s announcement to keep the interest rate unchanged. Post announcement, the crypto market witnessed a strong positive momentum leading Bitcoin to gain more than 7 per cent in the last 24 hours. The leading cryptocurrency is currently trading above $67,000 while Ethereum has inched closer to the $3,550 market with over 10 per cent gains since yesterday. 

The Crypto Fear and Greed Index has also seen a four-point jump from yesterday, taking the index to 78 points. 

Crypto Fear and Greed Index | Image credit: Alternative.me

Citing the initial decline in ETH prices due to news about an investigation into the ETH foundation, the CoinDCX Research Team, said, “After the initial decline, the announcement of unchanged Fed interest rates enabled the entire crypto market to bounce back, with altcoins outperforming BTC. 

“Technically, ETH/BTC found support at a crucial level, suggesting a potential uptrend for alts and ETH outperforming BTC. ETH closed the day with strong volume, indicating a possible continuation of the uptrend. BTC showed positive movement by rising above the 20 EMA Daily, and news of Microstrategy acquiring more BTC added to the positive sentiment,” added CoinDCX. 

Driven by the dovish stance of the Federal Reserve, the crypto market has recorded strong gains, marking a recovery of over 10 per cent. Highlighting a similar sentiment Rajagopal Menon, Vice President, WazirX said, “Despite recent setbacks, market sentiment improved following the Fed's reiteration of its commitment to maintaining rate-cut measures, alleviating concerns about inflationary pressures.” 

“Bitcoin's hourly MACD indicates bullish momentum, with the BTC/USD RSI rising above 60, signalling strength. Key support levels are observed at $65,500 and $64,800, while notable resistance levels are identified at $68,000, $68,800, and $70,000. These levels contribute to shaping the technical landscape and guiding potential trading strategies within the cryptocurrency market,” added Menon. 

CoinSwitch Markets Desk said, “In a complete U-side recovery, BTC recovered all of its losses from its highest losing day in 17 months and more by gaining close to 10 per cent in a single day. While the fear and greed index had now gone to 78, highlighting that this market correction was healthy and necessary. Altcoins on the other hand had similar behaviour and gave great losses to traders before rising up again.” 

The US Fed's choice to maintain interest rates has favourably influenced financial markets and supplied the essential momentum to reinitiate a rally. Vikram Subburaj, CEO, Giottus believes that Bitcoin can likely push for $70,000 in the short term.

Subburaj said, “Ethereum and other key altcoins have rallied by 8-10% today with memecoins posting double-digit gains. Key upside targets for altcoins: Ethereum ($3,650), BNB ($600), Solana ($200), XRP ($0.64), Cardano ($0.67), and Avalanche ($62).”