Bitcoin, Ethereum register strong recovery after Fed rate decision

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

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

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

Citing initial decline in ETH prices due to news about an investigation into ETH foundation, CoinDCX Research Team, said, “After initial decline, announcement of unchanged Fed interest rates enabled 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 day with strong volume, indicating a possible continuation of uptrend. BTC showed positive movement by rising above 20 EMA Daily, and news of Microstrategy acquiring more BTC ded to positive sentiment,” ded CoinDCX. 

Driven by dovish stance of Federal Reserve, 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 Fed's reiteration of its commitment to maintaining rate-cut measures, alleviating concerns about inflationary pressures.” 

“Bitcoin's hourly MACD indicates bullish momentum, with 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. se levels contribute to shaping technical landscape and guiding potential tring strategies within cryptocurrency market,” ded 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 fear and greed index h now gone to 78, highlighting that this market correction was healthy and necessary. Altcoins on or hand h similar behaviour and gave great losses to trers before rising up again.” 

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

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