When the crypto market is activated, Bitcoin targets $63k
Bitcoin broke past $62K post-Fed rate cut; The next resistance was added by $63K Ethereum and Solana, reflecting the broader crypto market rally where caution remains due to economic uncertainty and potential regulatory issues.
Bitcoin (BTC) price rose above $62,000 following the US Federal Reserve's decision to cut interest rates by 50 basis points.
The Fed's move, aimed at bolstering economic growth and mitigating recessionary risks, has sparked a rally in digital assets. The monetary policy adjustment boosted not only Bitcoin but also a wide range of altcoins and risk assets.
The next Bitcoin price resistance level is at $63k
Currently trading around $62,096, Bitcoin price has shown a strong 24-hour gain of 2.29% and an even more impressive 7-day gain of 6.20%.
Specifically, a price breach above the $62,000 mark represents a critical psychological level for Bitcoin, following a period of consolidation around $60,000.
Technical analysis shows that Bitcoin's next significant resistance level is set at $63,000, and further gains are possible if this barrier is crossed. The upper bound of Bitcoin's Bollinger Bands shows higher volatility, indicating that while a short-term hobby level may occur, the overall trend remains bullish.
The support was firmly established around $60,100, which was repeatedly tested and held firmly as a critical floor.
Investors' sentiment about Bitcoin is largely positive, with rising trading volumes reflecting institutional interest.
As Bitcoin's price continues to rise, it benefits from a broader narrative of cryptocurrencies serving as hedges against traditional market volatility and inflation fears exacerbated by the Fed's dovish stance.
Ethereum and Solana mirror Bitcoin's popularity as altcoins
The rate cut by the US Federal Reserve has not only affected the price of Bitcoin, but also triggered a broad rally in the cryptocurrency market, causing major altcoins to pull away from Bitcoin.
For example, Ethereum (ETH) rose above $2,400, showing a 24-hour increase of 4.94% and a 7-day increase of 2.97%. Ethereum's price reached $2,430 before settling lower, mirroring Bitcoin's bullish trend. Technical indicators show that if Ethereum breaks above this level, it will face immediate resistance at $2,430 for further gains.
Solana (SOL) saw significant price movements, rising by 6.03% to reach $138.65. This profit reflects Solana's ecosystem and renewed confidence in decentralized finance (DeFi) and intangible tokens (NFTs).
Other altcoins such as Ripple (XRP) and Shiba Inu (SHIB) also saw significant gains, with XRP up 1.20% to $0.59 and SHIB up 7.85% to $0.00001427.
Analysts remain cautious.
Despite the general positive feelings, market participants are cautious. Mixed reactions and concerns about the rally's sustainability are widely observed. Analysts suggest that while the rate cut will provide significant short-term growth, broader economic uncertainty and regulatory challenges could weigh on performance going forward.
In particular, Presto Research pointed out that the market remains fragmented and needs to be relieved from growth concerns.
Amidst a mixed market outlook, the coming months will be crucial in determining whether Bitcoin (BTC) price rally can maintain momentum and push the digital asset to new highs.
