Bitcoin Surges Above $117,000 After Fed Interest Rate Cut
Bitcoin (BTC) rose above $117,000 on Thursday. This increase came after the Federal Reserve cut interest rates by 25 basis points on Wednesday. The Fed’s dot plot showed most policymakers expect more rate cuts this year. This outlook boosted investor confidence in riskier assets like cryptocurrencies.
The Fed’s new interest rate range is 4.00% to 4.25%. The decision was supported by 11 of 12 Federal Open Market Committee members. They cited a softer labor market, rising unemployment, and persistent inflation as reasons for the cut. The crypto market responded positively, pushing prices higher.
Bitcoin Nears $120,000 as Bullish Momentum Builds
Bitcoin’s price settled above $117,000 with strong buying interest. The Relative Strength Index (RSI) rose to 61 from 37 at the end of August. This shows growing bullish momentum. If the RSI continues to rise, Bitcoin could break the $120,000 resistance level.
Traders will watch the SuperTrend indicator for confirmation of the uptrend. The next target is Bitcoin’s record high of $124,474, reached on August 14. However, if some investors take profits early, Bitcoin may test support levels at the 50-day EMA ($113,804) and 100-day EMA ($111,613).
Ethereum and XRP Aim for New Highs
Ethereum (ETH) is close to breaking a downward trendline. This trendline has held since ETH’s record high of $4,956 on August 24. Key moving averages support the uptrend. These include the 50-day EMA at $4,229, 100-day EMA at $3,786, and 200-day EMA at $3,327. The RSI at 57 suggests more upside potential.
If Ethereum breaks above resistance near $4,800 and its record high, it could reach $5,000 soon. However, Ethereum ETFs saw small outflows of $1.89 million on Wednesday. This could limit gains if institutional investors reduce exposure.
XRP bulls remain strong above $3.00. The 50-period EMA at $2.95 offers support. XRP’s RSI rose to 58 from 51 earlier this week, signaling bullish momentum. A move above $3.18 would increase chances of reaching $3.50 and the all-time high of $3.66.
