This week's U.S. CPI data stabilized the market, with the Federal Reserve lowering interest rates by 25 basis points and being cautious about further rate cuts. Bitcoin experienced a turbulent decline, while Ethereum oscillated in the short term within the $3,300 - $3,800 range, awaiting guidance from Bitcoin.
Article author, source: Bitfi
This week's hot topics
On Wednesday, the U.S. released the latest Consumer Price Index (CPI) data. The CPI was largely in line with market expectations, allowing the U.S. stock and cryptocurrency markets to stabilize without causing significant fluctuations. Nevertheless, market attention quickly shifted to the Federal Reserve's latest interest rate decision and its subsequent impact. The Federal Reserve announced a reduction of the benchmark interest rate by 25 basis points, lowering the target range to 4.25%-4.5%. This action marked a 1 percentage point pullback from the peak, indicating the Fed's gradual adjustment to the market environment. However, it also emphasized a cautious stance on further rate cuts in the context of various inflation indicators rebounding. This statement caused unease in the market regarding future policy directions, dampening investor optimism for the continuation of loose monetary policies.
Market Analysis
Bitcoin (BTC)
Bitcoin has been in a triangular consolidation phase this week, which can also be viewed as an upward channel. Following Powell's speech, Bitcoin briefly dipped below the $100,000 mark. Earlier that day, Bitcoin attempted to rebound above $100,000 but quickly fell back to a low of $97,000. It then slightly rebounded to around $98,000 but again dipped below $96,000, accumulating a 4.8% decline over the past 24 hours. The overall structure remains oscillatory, and it is unwise to hold overly high expectations in the short term. Key support levels are $94K, $91K, and $85K.
Ethereum (ETH)
If Ethereum falls below $3,500, it may trigger a deeper correction as bearish momentum could strengthen. However, as long as Ethereum can hold above the 200 EMA on the 4-hour chart, a rebound is still expected. In the short term, Ethereum is anticipated to oscillate within the $3,300 to $3,800 range. In the coming week, the consolidation trend is expected to continue, with the market waiting for Bitcoin to break through the key resistance level above, providing further guidance for Ethereum.
