Bitcoin (BTC) and Ethereum (ETH) continued to climb after witnessing a slight correction on Tuesday as the crypto market rally continued. BTC is within touching distance of $65,000, and ETH is close to the $2,700 mark. The overall crypto market capitalization also registered an increase of 2.01% to climb to $2.26 trillion. BTC is up over 2% in the past 24 hours, while ETH is up 0.80% in the same duration.
The surge in the cryptocurrency and traditional markets can be attributed to the Federal Open Market Committee’s decision to cut interest rates by 50 basis points, setting a new target range for the federal funds rate at 4.75% to 5%. As a result, global assets, the US Dollar, cryptocurrencies, and even meme coins have soared.
Crypto Market Continues Rally
The rate cut raised several concerns, with some arguing the Fed acted too late, signaling a potential recession. The previous two occasions when the Fed announced a 50 basis point rate cut were the 2001 and 2008 recessions, with market watchers concerned this rate cut would pose similar challenges. However, some analysts have argued that the Federal Reserve could be navigating a “Goldilocks” period in which the economy grows sustainably.
As a result, crypto markets have seen a substantial rebound, led by BTC and ETH. ETH has registered a jump of almost 14% over the past week, hinting at a return of investor risk appetite. Meme coins have also seen a resurgence, with popular meme tokens registering double-digit growth. Meanwhile, BTC is up almost 7% over the past week, although its dominance in the crypto markets has registered a drop, hinting at a broad rally in the crypto market.
Other key macro indicators have also reacted positively, with the US Dollar Index rising by 0.36%. The USD/JPY exchange rate, which had slipped to 141 before the Federal Reserve’s announcement, has since risen to 143.5. The weakening of the yen has further boosted risk assets such as cryptocurrencies. Gold, an asset considered a safe haven, has also increased.
Meanwhile, spot Bitcoin and Ethereum ETFs have also registered inflows, adding to the buoyancy of the crypto markets. Spot Ethereum ETFs registered inflows of $8.1 million over September 19 and 20, while spot Bitcoin ETFs registered significantly larger inflows of $250 million over the two days.
SEC Grilled On Crypto Oversight
All five Securities and Exchange Commission commissioners, including SEC Chair Gary Gensler, testified at a full congressional hearing, coming under criticism for its “scorched earth” regulatory approach towards the crypto industry. Gensler and commissioners Hester Peirce, Mark Uyeda, Caroline Crenshaw, and Jamie Lizárraga were appearing before the US House Financial Services Committee for the first time since 2019. The SEC came under intense criticism from lawmakers for its aggressive stance towards crypto, with lawmakers stating that the SEC under Gensler had stifled the industry with regulatory policy uncertainty. The committee questioned Gensler and fellow commissioner Peirce, both of whom have been highly critical of crypto, questioning them about the SEC’s unclear terminology regarding assets such as Ethereum.
Lawmakers argued the SEC had failed to provide any regulatory clarity on crypto, adding that the agency’s use of ambiguous language impacted its ability to oversee and regulate markets. Representative French Hill stated the SEC had been “frontrunning Congress on crypto regulation” and attempted to seize crypto oversight through broad enforcement action.
Bitcoin (BTC) Price Analysis
Tuesday saw major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) trade slightly lower as markets experienced a slight correction. BTC experienced a drop below $63,000 as it fell to $62,855 before climbing back above $63,000. It briefly rose to $64,700 before dropping to its current level of $63,950. Analysts have stated that BTC was rejected above $64,000, falling to its consolidation range, with the asset remaining range bound. BTC must hold near the $64,000 level to trigger a rally past $65,000. The market could see a pullback to $62,000 or lower if it fails to stay above this level.
“Bitcoin has been rejected above $64,000 and has dropped to its previous consolidation range at $63,000. The asset remains range-bound, even as spot ETFs experienced outflows yesterday. Looking ahead, a decisive weekly close above $64,000 could trigger a rally toward $65,000. However, if this level fails to hold during a retest, a pullback to $62,000 may occur.”
The push above $64,000 was driven by growing monetary easing expectations, with China joining a global monetary easing campaign driven by major economies as they look to combat a slowdown. The brief dip below $63,000 came after the Conference Board reported declining consumer confidence in September, with the headline index dropping from 105.6 to 98.7, the sharpest monthly drop since August 2021.
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further. Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income.”
Looking at the price chart, we can see that buyers and sellers are locked in a fight to claim the $64,000 level. Buyers have faced significant resistance, having been unable to push above $64,000 and the 200-day SMA despite bullish sentiment picking up in recent sessions. BTC was quite bullish during the past week but has since stuttered, with bulls unable to register significant increases as selling pressure grows closer to the resistance levels. We can see BTC attempt to push above the 200-day SMA and $64,000 on Thursday. However, it fell back after reaching a day high of $63,886, eventually settling at $61,556. Volatility increased on Friday as buyers made yet another attempt to push above $64,000, only to be rejected again. With the increasing selling pressure, BTC could register only a marginal increase and move to $63,229.
Source: TradingView
BTC registered another marginal increase on Saturday before experiencing considerable volatility on Sunday as sellers attempted to drag the price below $60,000. As a result of the selling pressure, BTC dropped to a low of $62,427 before recovering and settling at $63,586, an increase of 0.32%. The current week began with volatility persisting as sellers took control after yet another unsuccessful attempt to push above $64,000. As a result, BTC registered a drop of 0.37% despite reaching a day high of $64,712 and settled at $63,348. Tuesday saw buyers retake control as demand picked up, allowing BTC to register an increase of 1.46% and settle at $64,275.
The current session sees BTC down by almost 1% and trading at $63,719. So where does BTC go from here? Despite facing strong resistance between $64,000 and $65,000, BTC has remained above $63,000, indicating that support could be building at this level as BTC keeps registering higher lows. If BTC can stay above $63,000, the chances of a breakout above $65,000 increase significantly. A break above this level could push BTC towards $70,000. Conversely, if sellers continue to exercise control, BTC could slip below $63,000 and drop to the $60,000 support level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has registered a slight correction during the ongoing session and is down almost 1% over the past 24 hours. Despite the drop, ETH is up almost 14% over the past week, indicating that investors have rediscovered their appetite for ETH. However, the altcoin faces significant resistance at $2,700, a level it must overcome if a push to $3,000 is to become a reality. As we can see in the price chart, ETH has been quite positive since last week, pushing above $2,400 and $2,500, as well as the 20- and 50-day SMAs. By Friday, it has pushed up to $2,561 after an increase of 3.90%. Despite the positive sentiment, ETH had a mixed weekend as sellers attempted to influence the market.
Source: TradingView
On Saturday, ETH dropped to a low of $2,530 before recovering and pushing above $2,600, rising to $2,614 after an increase of just over 2%. However, it fell back in the red on Sunday as sellers looked to drive the price back below $2,500. As a result, ETH dropped to a day low of $2,525 before recovering as investors bought the dip. In the end, ETH ended Sunday in the red, slipping below $2,600 and settling at $2,583. The current week began with ETH attempting to push above the $2,700 level. As a result, ETH rose to a day high of $2,704. However, it was rejected from this level and dropped to $2,647 after registering an increase of $2,674.
Volatility increased on Tuesday as buyers and sellers attempted to take control. Despite increased selling pressure, ETH managed to register a marginal increase. The current session sees ETH down by 1.10% and trading around the $2,625 mark. Sellers will look to push ETH back below $2,600 to prevent a break above $2,700. If buyers can regain momentum, ETH could test the $2,700 level once again. A break above this level could open the doors for a rally to $3,000.
Source: TradingView
While ETH has struggled to conquer $2,700, a surge in open interest has pointed to further price increases over the next few weeks and months, which could potentially bring the price close to $3,000.
Solana (SOL) Price Analysis
Solana (SOL) finally pushed above $150 on Tuesday, as it rose to $152 after an increase of almost 6%. However, it finds itself back in the red during the current session as sellers look to push the price back below $150. SOL was quite bullish towards the end of last week and had been looking to push above $150 since Friday when it rose to a day high of $152. However, buyers lost momentum at this level, and sellers could push SOL back below $150. It eventually settled at $146 after an increase of 2.67%. Saturday saw yet another attempt to push above $150 as SOL registered an increase of 1.90%. However, once again, it could not push above $150 and fell back in the red on Sunday, dropping to $144 after a fall of 3.20%. Sunday also saw SOL drop to a day low of $141, but it quickly recovered, thanks to the 50-day SMA acting as a dynamic level of support.
Source: TradingView
The current week began with SOL facing significant volatility as buyers attempted to push above $150 while sellers looked to drive it below $140. In the end, SOL registered only a marginal increase to remain at $144 after registering a low of $142 and a high of $149. Sentiment changed on Tuesday as SOL surged by 5.50% to push above $150 and settle at $152. However, with the 200-day SMA coming into play, buyers lost steam and could not go higher. The current session sees SOL down by almost 2% as buyers look to push it back below $150.
If SOL can stay above $150, the next critical levels to watch are $155 and $160. If it gets above these levels, it could aim for $170 and then $190. However, sellers are strongly defending the $150 level, and buyers will have a tough time keeping SOL above this level. If sellers push SOL below $150, it could drop to $140, where it is expected to stabilize.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) is still struggling to push above $0.110 with buyers unable to overpower sellers at this level, with the popular meme coin back in the red during the ongoing session. As we can see in the price chart, DOGE has been trading between $0.105 and $0.110 since the latter half of the previous week and registered a considerable jump on Saturday when it rose by almost 4% to move to $0.109. However, with sellers active at $0.110, DOGE could not push higher and fell back into the red on Sunday, dropping by 3.19% to $0.106. Sellers attempted to drive it below $0.105 but were unsuccessful.
Source: TradingView
DOGE was back in the green on Monday, although high levels of volatility persisted. It eventually registered an increase of 1.41% and settled at $0.107. The meme coin continued to push higher on Tuesday, registering an increase of 2.23% and moving to $0.110. Once again, sellers prevented a move higher, and DOGE fell back into the red during the ongoing session, with the price down by 0.73%. DOGE remains in a narrow trading zone between $0.105 and $0.110. If neither buyers nor sellers can exert influence and dictate price movements, DOGE will remain trading between these levels for now. If buyers can build momentum, they will look to push and consolidate above $0.110. On the other hand, sellers will attempt to drive DOGE below $0.105. If this level is breached, DOGE could drop to $0.100.
Bittensor (TAO) Price Analysis
Bittensor (TAO) has remained bullish despite struggling to push above the $560 level. TAO has seen its market capitalization register an increase of almost 2%, while its daily trading volume has jumped by almost 28%, with a community vote revealing that 86% of those participating were bullish. TAO has been up almost 70% over the past week, even though the current week has seen its incredible bullish surge stutter at around $560 and $600 levels, with bears defending both levels. TAO’s incredible surge started last Monday after it rebounded from a low of $288. By the weekend, it had surged almost 100% after hitting $469 on Saturday.
Source: TradingView
Buyers took a break on Sunday as sellers attempted to influence TAO. However, despite seller attempts, TAO registered a marginal increase and ended the weekend on a positive note. TAO surged past $500 on Monday as it resumed its upward trajectory, registering an increase of almost 15% to settle at $540. Bullish sentiment was so strong that TAO even surged to a day high of $582 before selling at higher levels pushed it down to $540. Buyers pushed TAO to a day high of $600 on Tuesday, but with selling pressure increasing at upper levels, the price fell back below $560. TAO eventually registered an increase of 1.71% and settled at $550. The current session sees TAO up by 2.39% and trading at $569.
As we can tell, bullish sentiment has waned even though TAO remains bullish. We may see a pullback from current levels because the RSI is far into the overbought zone. As such, TAO could drop to $500 following selling activity.
Ripple (XRP) Price Analysis
Ripple (XRP) continues to trade sideways and remains range-bound between $0.55 and $0.60. XRP did push above $0.60 on Saturday when it rose to a day high of $0.61. However, sellers quickly pushed it back below $0.60, eventually settling at $0.59. XRP fell into the red on Sunday, dropping by 1.61% to end the weekend on a negative note at $0.58. The current week began with XRP witnessing increased volatility as buyers and sellers attempted to establish control. It eventually registered a marginal drop of 0.58%.
Source: TradingView
Tuesday saw buyers return to the market as XRP registered an increase of 0.96% and settled at $0.59. However, a move above $0.60 did not materialize, with XRP in red during the ongoing session.
Celestia (TIA) Price Analysis
Celestia (TIA) has been quite bullish since rebounding from a low of $3.91 on September 6. Since then, it pushed above key resistance levels and, by Thursday, rose to a day high of $6.50 before dropping back and settling at $5.94. With sellers actively defending the $6 level, TIA could only register an increase of 1.26% on Friday and a marginal increase on Saturday to settle at $0.01. Selling pressure intensified on Sunday as TIA dropped almost 11% to $5.36. Despite ending the weekend on a bearish note, TIA surged on Monday, rising by an incredible 23.94% to break above $6 and settle at $6.46.
Source: TradingView
Buyers attempted a move to $7 on Tuesday but lost momentum in the face of growing selling pressure at upper levels. As a result, TIA fell back into the red on Tuesday, dropping by 3.47% and settling at $6.41. The current session sees sellers in control after they thwarted a move towards $7. TIA rose to a day high of $6.83 but could not sustain momentum, allowing sellers to take over. TIA is currently down by 1.42% and trading around the $6.32 mark. Sellers will look to drive TIA below $6. Should this happen, TIA could drop all the way to $5. On the other hand, the bulls will look to keep TIA above $6 and retest the $6.50 and $7 levels.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
