Bitcoin and Ethereum Price Prediction as Fed Interest Rate Decision is Announced – New Bull Market Starting?

By CryptoNews - 2 months ago - Reading Time: 3 minutes
Wed, Jan 31, 2024 8:22 PM

Bitcoin and Ethereum Price Prediction as Fed Interest Rate Decision is Announced – New Bull Market Starting?

In the wake of the Federal Reserve’s latest decision to hold interest rates steady at 5.50%, the financial world turns its gaze to the potential impacts on major cryptocurrencies, notably Bitcoin and Ethereum.

This stabilization of the federal funds rate comes amid a backdrop of solid economic expansion, with enduring job strength and a persistently low unemployment rate, albeit amidst ongoing inflation concerns.

As the Fed continues its vigilant approach towards inflation, aiming to anchor it back to a 2% target, the crypto market, known for its sensitivity to macroeconomic shifts, could be on the cusp of a new trend.

Rates unchanged

FOMC statement gets a big rewrite.

Tightening bias gone, but in a way that says a cut isn’t necessarily imminent.

“The Committee does not expect it will be appropriate” to cut “until it has gained greater confidence that inflation is moving sustainably" to 2% pic.twitter.com/Rzs7fFE8hv

— Nick Timiraos (@NickTimiraos) January 31, 2024

Investors and enthusiasts are now keenly eyeing Bitcoin and Ethereum price predictions, seeking to gauge whether this latest monetary policy stance could herald the start of a new bull market in the digital currency space.

Bitcoin Price Prediction

The BTC/USD pair presents a pivotal moment as it hovers around the key pivot point of $42,864, marked by the green line on the chart. The currency faces immediate resistance at $43,922, with further ceilings at $45,229 and $46,446, which could impede upward movements.

Conversely, support levels at $42,209, $40,810, and $38,822 offer a cushion against price retractions.

The Relative Strength Index (RSI) is currently at 53, hinting at a neutral to slightly bullish momentum without tipping into overbought or oversold conditions.

There’s an upward channel on the 4 hourly timeframe which is likely to support uptrend in Bitcoin. The 50 EMA at $42,209 provides a baseline for the currency’s resilience.

In conclusion, the trend for Bitcoin appears cautiously optimistic, hinging on its ability to maintain above the pivot point with an eye towards testing the immediate resistances.

Ethereum Price Prediction

Ethereum is currently trading at $2,299.7, slightly below its pivot point of $2,308.3, as indicated by the green line. The digital asset faces immediate resistance at $2,393.1, with subsequent barriers at $2,482.6 and $2,546.4.

Supports lie at $2,292.5 and further down at $2,233.0, with a stronger base at $2,166.5. The Relative Strength Index (RSI) is neutral at 59, suggesting a balance between buying and selling pressures.

The 50-day Exponential Moving Average (EMA) lies at $2,300.4, hovering near the pivot point, which could serve as a dynamic support in the short term.

Currently, Ethereum is contained within a symmetrical triangle pattern, indicating consolidation and the potential for a breakout. The chart suggests a holding pattern with the potential for a bullish move if Ethereum sustains above the upward trendline and the $2,300 support area.

Buyers may gain confidence for a push towards higher resistance levels if this support holds. Overall, the market posture for Ethereum is cautiously optimistic, with a close eye on the pivotal $2,300 mark to determine the short-term directional bias.

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Original source: CryptoNews