Analyst Reveals What Will Happen Next for BTC and ETH
Cryptocurrency markets entered the week on a high note, hoping that a rate cut by the US Federal Reserve would spark a bull run. However, traders were left confused. Despite the rate cuts and signs of quantitative tightening coming to an end, Bitcoin and Ethereum both fell sharply.
The reaction surprised many. Historically, lower interest rates and easier liquidity have boosted risk assets like cryptocurrencies. But this time, the market did not react. Analysts say the unusual behavior indicates a deeper technical setup rather than a fundamental shift.
Bitcoin holds key level
Bitcoin started the week trading around $115,000 but quickly lost momentum. Analyst DataDash said that after BTC abandoned the $114,000 support level, the price fell sharply. This pattern is often seen after strong price increases.
Bitcoin is currently expected to fluctuate between $97,000 and $120,000 in the short term. This sideways movement reflects uncertainty, not weakness. Once the market absorbs recent macro developments, Bitcoin could rebound strongly.
Fed warning adds pressure
Part of the reason for the market's hesitation is the tone of the Fed. Chairman Jerome Powell has hinted that no further rate cuts are likely in December, while warning about inflation and economic stability. This conservative stance has unnerved investors, leading to risk-off behavior across markets, including cryptocurrencies.
However, analysts say these developments are not bearish in the long run. With quantitative tightening expected to end soon, liquidity could improve as early as 2026, supporting higher cryptocurrency valuations.
Ethereum tracks Bitcoin's moves
Ethereum followed a similar path. After briefly testing higher levels around $3,900, ETH fell to the $3,700 region. Despite this correction, the analyst said Ethereum remains in a safe range as long as it remains above $3,300.
In the short term, ETH is expected to trade sideways. However, more broadly, analysts see upside potential to $5,000 to $7,000 from November to early next year, especially as demand for crypto-assets and institutional adoption increases.