Weekly Crypto Analysis [2024.08.25]: Are Bulls Taking Control of the Cryptocurrency Market After the FED Says “Time to Cut Rates”?

Hello, and welcome to xlearn’s weekly crypto analysis article series. If this is your first time here, I recommend reading our guide on how to use our market analysis article before diving into this one.

By following these articles, you can learn how to read prices and perform price action trading. These articles cover major coins and tokens such as BTC, ETH, and BNB, and also incorporate other best cryptocurrencies to watch now.

Before we start trading, we need to understand what’s happening in the market and around the world. So, let’s start with an overview of upcoming week’s economic events.

Economic Events this Week

These events encompass important global news that could affect cryptocurrency market, macroeconomic reports, and economic indicators.

For more details, you can check coinmarketcal & crypto craft.

2024.08.29

8:30 ET: The US Preliminary GDP quarter-over-quarter report is being released. This shows the annualized change in the value of all goods and services produced by the economy. The previous and forecasted numbers are both at 2.8%. If the ‘Actual’ figure is lower than the ‘Forecast,’ it’s generally seen as positive for crypto. While this data is quarterly, it’s reported in an annualized format (quarterly change multiplied by 4). There are three GDP reports released about a month apart: Advance, Preliminary, and Final. The Advance release usually has the most impact, as it’s the earliest and broadest measure of economic activity, making it a key indicator of the economy’s health.

2024.08.30

8:30 ET: The US Core PCE Price Index month-over-month report will be released. This report tracks the change in the price of goods and services purchased by consumers, excluding food and energy. Both the previous and forecasted figures are at 0.2%. If the ‘Actual’ figure is lower than the ‘Forecast,’ it’s generally seen as positive for crypto. Unlike Core CPI, which is released about 10 days earlier and gets more attention, the Core PCE focuses only on goods and services consumed by individuals, with prices weighted by total spending per item. This index is the Federal Reserve’s main measure of inflation, which is crucial for currency valuation since rising prices often lead the central bank to raise interest rates to control inflation.

At the Jackson Hole Symposium, FED Chairman Jerome Powell said that inflation is easing and that it might be time to cut interest rates. This is the first time in a long while that the FED has mentioned being ready to lower rates, marking a major shift in monetary policy. With markets already at all-time highs, a rate cut is generally seen as positive because it encourages more investment. Markets are preparing for a 0.25% rate cut, so keep in mind that trading could be more bullish. However, we’ll only know for sure after the September FOMC statement.

Cryptos to Watch

Bitcoin(BTC):

BTC is trending up, having broken above the $63,000 resistance level, and is now heading toward the $67,500 range. On the 1-hour chart, the price is consolidating, with resistance at $65,000 and support at $63,000. The trend will be clear after a breakout: if it breaks above the resistance, it could continue rising toward the next resistance level. If it breaks below the support, it might drop further to the next support level.

Ethereum(ETH):

ETH was trending down, but after reaching the support level of $2,560, the price pulled back and started going up, suggesting it might be in an uptrend now, but we can’t be 100% sure yet. The $2,880 level is a major resistance; if ETH breaks above it, we can confirm the uptrend. Looking at the 1-hour chart, it’s consolidating, similar to BTC. As mentioned, the future trend will only be clear after a breakout, so wait for the breakout to confirm the trend.

Binance Coin(BNB):

BNB is currently consolidating. It recently pulled back from the major resistance level of $600 and is now at the support level of $570. If the price breaks below $570, it could continue dropping toward $550, and if that level also breaks, it might go down to $510. On the other hand, if the price starts to rise from $570 or another support level and breaks above $600, we can confirm that BNB is entering an uptrend, and the price will likely continue to go up.

Solana(SOL):

Looking at Solana, it’s consolidating. It recently pulled back from the support at $120 and is now at a resistance level of $164, pulling back again. If the price breaks above this resistance, we can expect it to continue toward the $190 level, and if that level is also broken, it could move toward $200. On the other hand, if the price starts to drop from $164 and breaks below $148, it might continue dropping toward $140, and if $140 is also broken, it could fall further to $120.

Cardano(ADA):

In the long term, Cardano is trending down, but on the 1-hour chart, the price was trending up. However, it recently broke below support, and now the trend is starting to drop. We can expect the price to continue falling toward $0.2900. On the other hand, if the price turns back up and breaks above the $0.4200 resistance, we can expect it to keep going up.

Tron(TRX):

Tron is nearing its all-time high levels, so the overall trend remains bullish. On the 1-hour chart, the price is consolidating between the support level of $0.14500 and the resistance level of $0.17000, and it’s currently near the resistance. We can either expect a pullback around this level, or if the price breaks above it, it could start rising toward $0.18000. On the other hand, if the price starts to drop and breaks below the $0.14500 support, it could continue falling toward $0.11000.

Conclusion & Disclaimer

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These analyses are here to help you understand how to analyze the market. They’re not about giving buy or sell signals. It’s simply about observing price action market behavior. I don’t recommend when to buy or sell because trading doesn’t work that way. You need a strategy to guide your decisions about when to enter or exit positions. That’s the key to making consistent profits in the financial markets over time.

The information provided in this market analysis is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any securities or investments.

All investments involve risk, and past performance is not indicative of future results. The analysis provided may not be suitable for all investors and should be used at their own discretion.

Readers are encouraged to conduct their own research.

Trading and investing in financial markets carry inherent risks, including the risk of losing invested capital. It is important to carefully consider your investment objectives, risk tolerance, and financial situation before making any investment decisions.

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