The past week was quite eventful and favorable for the entire cryptocurrency market. All top 10 coins by capitalization showed an upward trend. Ethereum was especially well bid, up more than 11%. As a result, the main altcoin even outperformed bitcoin, which spiked 7.5%. The main upside driver was the outcome of the FOMC’s September 18 meeting.
The Fed cut interest rates by 50 bps. In line with the regulator’s dot plot, rates will be reduced to 3.4% in 2025. This will contribute to the expansion of market liquidity, which will have a favorable effect on high-risk assets, including cryptocurrencies.
The BTC/USDT pair has been trading near $63,132 on Tuesday, September 24. Sellers are defending the $64,500 level, attempting to prevent buyers from reaching the $68-70k range. Technical factors point to an extension of the uptrend. Presidential candidates Trump and Harris have pledged to support the crypto industry, so external factors now look tilted to the buy side. But since the price action cannot rise indefinitely without pullbacks, any failure of buyers to break above intraday resistance would force them to retreat so as to build up new momentum.
Key support lies at $61,900. This is a tipping point, below which buyers should not let sellers push, otherwise, after a 23% rebound from a low of $52,550 to $64,746, a downward correction would break out. In this case, it could last until mid-October.
Market participants now await further signals about the Fed’s rate path forward at its next meeting. Consequently, the focus now turns to Fed speak and the personal consumption expenditure (PCE) price index scheduled for release stateside on Friday.