This week's US CPI data leads to a stable market, the Federal Reserve cuts interest rates by 25 basis points and is cautious about further cuts. Bitcoin experiences volatility and declines, while Ethereum oscillates in the short term between $3,300 - $3,800, awaiting guidance from Bitcoin.
Article author, source: Bitfi
This week's hot topics
This Wednesday, the US released the latest Consumer Price Index (CPI) data. The CPI was basically in line with market expectations, allowing the US stock and cryptocurrency markets to stabilize without significant fluctuations. Nevertheless, the market's focus quickly shifted to the Federal Reserve's latest interest rate decision and its subsequent impact. The Federal Reserve announced a 25 basis point cut in the benchmark interest rate, bringing the target range down to 4.25%-4.5%. This move marks a 1 percentage point withdrawal from the peak, indicating the Federal Reserve's gradual adjustment to the market environment. However, he also emphasized that, against the backdrop of various inflation indicators rebounding, the Federal Reserve is cautious about further rate cuts. This statement has made the market uneasy about the future policy direction, dampening investors' optimistic expectations for the continuation of loose monetary policy.
Market Analysis
Bitcoin (BTC)
Bitcoin is overall in a triangular consolidation phase this week, which can also be seen as an upward channel. After Powell's speech, Bitcoin briefly fell 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 in the past 24 hours. The overall structure still leans towards volatility, and it may not be wise to have 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 may further 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 expected to oscillate within the $3,300 to $3,800 range. In the coming week, the integration trend is expected to continue, and the market is waiting for Bitcoin to break through the key resistance level above to provide further guidance for Ethereum.
