Bitcoin Hits Record High Near $77,000 After Fed Rate Cut: Ethereum and Ripple Follow Suit
Bitcoin (BTC) has surged to a new all-time high (ATH) of $76,849, following the US Federal Reserve's recent decision to cut interest rates by 25 basis points. This significant move has not only propelled Bitcoin to new heights but has also positively impacted other cryptocurrencies, with Ethereum (ETH) and Ripple (XRP) breaking through key resistance levels.
On Wednesday, Bitcoin's price surpassed its previous ATH of $73,777, which was recorded in March, reaching $76,400. The momentum continued into Thursday, where it peaked at $76,849. As of Friday, Bitcoin is trading slightly higher at approximately $75,900.
Analysts suggest that if Bitcoin maintains its upward trajectory, it could aim for the 141.40% Fibonacci extension level at $78,777, calculated from July's high of $70,079 to August's low of $49,072.
The Moving Average Convergence Divergence (MACD) indicator has shown a bullish crossover on Wednesday's daily chart, indicating a strong buy signal. However, the Relative Strength Index (RSI) currently sits at 70, which is in the overbought territory and is trending downwards. Traders are advised to exercise caution, as the likelihood of a price pullback increases with the RSI's downward tilt.
Should Bitcoin fail to sustain its upward momentum and close below $73,777, it may retrace to test the psychologically significant level of $70,000.
Meanwhile, Ethereum has demonstrated robust performance, finding support at the daily level of $2,342 on Monday and rallying over 20% to break through the resistance at $2,820 by Thursday. As of Friday, ETH is trading slightly higher around $2,911.
If the $2,820 level holds as support, Ethereum could extend its rally by 11%, potentially retesting its weekly resistance at $3,236. The MACD indicator also supports Ethereum's bullish trend, showing a crossover on Thursday's daily chart, with the RSI at 68 and trending upwards, indicating strengthening bullish momentum.
Conversely, if Ethereum fails to maintain above $2,820, it may decline to retest its next support level at $2,342.
Ripple has also seen positive movement, finding support at $0.488 on Sunday and rising over 10.5% by Thursday, closing above the 200-day Exponential Moving Average (EMA) at $0.547. As of Friday, XRP is trading slightly lower at around $0.550.
If the 200-day EMA at $0.547 holds, Ripple could extend its rally by 15%, aiming to retest its daily resistance at $0.626. The MACD indicator supports Ripple's upward movement, showing a bullish crossover on Wednesday's daily chart, with the RSI at 58, indicating that bullish momentum is building.
However, if the 200-day EMA fails to hold, XRP may decline to test its next key support at $0.488.