The crypto market is in a holding pattern as Bitcoin and Ethereum consolidate ahead of a critical Federal Reserve policy decision. Will the Fed’s next move spark a breakout or a breakdown? Here’s what traders need to know.
Bitcoin News: Key Levels to Watch
Bitcoin has been trading between $115,000 and $120,000, with technical indicators suggesting potential upward momentum. Key levels:
- Resistance: $120,000 (breakout could target $135,000)
- Support: $115,000 (breakdown might test $100,000)
- 20-day SMA: $118,313
Ethereum Outperforms Bitcoin as Altcoins Gain Traction
Ethereum’s perpetual futures volume dominance has surpassed Bitcoin’s for the first time, signaling growing interest in altcoins. ETH is holding above $3,745, with potential to test $4,868 if support holds.
How Fed Policy Could Impact Crypto Markets
The Federal Reserve’s upcoming rate decision could determine the market’s next direction. Historical data shows August is typically weak for Bitcoin, with average returns of just 2.56% over 13 years.
Altcoin Watchlist: Key Support and Resistance Levels
| Coin | Support | Resistance |
|---|---|---|
| BNB | $794 | $861 |
| XRP | $3.05 | $3.16 |
| Solana | $178 | $209 |
FAQs: Crypto Market and Fed Policy
Q: When is the next Fed meeting?
A: The next Federal Open Market Committee meeting is scheduled for early August.
Q: Why does Fed policy affect crypto markets?
A: Changes in interest rates impact investor risk appetite and liquidity conditions.
Q: What’s the best strategy during market consolidation?
A: Many traders watch key support/resistance levels and wait for clear breakout signals.
Q: Are altcoins a better bet than Bitcoin right now?
A: Some altcoins are showing relative strength, but Bitcoin remains the market leader.
