Bitcoin and Ethereum started the week with renewed bullish momentum attributed to favorable macroeconomic conditions, including the Federal Reserve’s dovish policy stance and improved liquidity. Both cryptocurrencies experienced significant gains following the Fed’s March 19 decisions. Upcoming economic data is expected to shape market movements, and both Bitcoin and Ethereum exhibit potential for further growth, contingent upon overcoming key resistance levels and maintaining support.

Bitcoin (BTC) and Ethereum (ETH) have begun the week with renewed bullish activity, fueled by favorable macroeconomic and regulatory factors. The Federal Reserve’s decision to maintain steady interest rates and hint at potential rate cuts in 2025 has bolstered investor confidence across risk assets. This dovish stance, combined with improved liquidity expectations and positive developments in the cryptocurrency sector, has helped elevate both digital currencies from their recent lows.

Following the Federal Reserve’s March 19 policy update, Bitcoin and Ethereum experienced significant weekly gains. The Federal Reserve’s decision to keep interest rates steady at 4.25-4.50% and its projections for two rate cuts in 2025 reduced investor concerns about tightening monetary policy. Consequently, Bitcoin rose nearly 4.30%, reaching a high of $87,470, while Ethereum increased by 6.30%, surpassing the $2,000 threshold.

Enhanced liquidity conditions supported this upward trend, as the Fed indicated a slower pace of quantitative tightening commencing in April. Additionally, recent patterns in key volatility indicators suggest a decrease in hedging demand, with diminishing put option buying signifying reduced concern for extreme downside risks. If this trend persists, it may indicate the establishment of a near-term recovery in risk assets, including Bitcoin and Ethereum.

The upcoming week is expected to bring various economic data points that could influence the market, particularly concerning the health of the U.S. consumer, a critical component of economic stability. Such data will assist in evaluating whether recent trade policies are contributing to inflation. The ongoing trade narrative is further complicated by potential changes in tensions impacting investor sentiment and risk appetite, ultimately affecting Bitcoin and Ethereum prices.

As market sentiment stabilizes, Bitcoin and Ethereum are evidencing signs of recovery. Their respective performance charts indicate the possibility of short-term upward momentum supported by crucial Fibonacci levels and moving averages. Bitcoin concluded the week at $87,061, with bulls defending trendline support. The 50-week EMA at approximately $77,722 played a vital role as dynamic support, facilitating a bounce back after a recent dip.

From a Fibonacci perspective, Bitcoin is retracing from the 0.618 Fib level (~$81,581) derived from the 2021 high to the 2022 low. Should upward momentum persist, Bitcoin could target the $95,000 to $101,987 range, aligning with the ascending channel upper boundary. However, the RSI at 59.14 indicates a neutral strength, necessitating a breakthrough of the psychological $90,000 resistance to confirm further bullish movement, with failure potentially resulting in sideways consolidation within the $81,000 to $85,000 support area.

Ethereum closed at $2,075.5, reflecting a gain of over 3.40%, as it continues to recover from weekly oversold circumstances. With an RSI climbing from a low of 37.88 to 44.89, there are signs that downside pressure is diminishing. Ethereum’s price action is situated just above the 0.236 Fib retracement (~$1,820), and it is currently facing resistance near the 200-week EMA of $2,282, with the 50-week EMA at $2,794 providing additional resistance.

If Ethereum can regain the $2,280 to $2,400 range, it may target the $2,870 to $3,340 resistance zone, marked by the 0.5 and 0.618 Fibonacci levels. Conversely, maintaining support above $1,820 will be crucial to prevent a retest of the $1,500 to $1,600 range.

Furthermore, Yashu Gola, a recognized crypto journalist and analyst, offers extensive market analysis and valuable insights into trends within the digital asset and macroeconomic landscapes. His expertise encompasses evaluating technical patterns and providing educational content that bridges traditional finance and cryptocurrency.

The recent bullish momentum observed in Bitcoin and Ethereum can be attributed significantly to the Federal Reserve’s dovish stance on interest rates and supportive liquidity conditions. Key economic data in the coming week will be critical for assessing market trends. The prices of both cryptocurrencies exhibit potential for further growth, contingent upon overcoming resistance levels and maintaining crucial supports. Market participants are advised to remain vigilant amidst evolving economic conditions and trade narratives that could impact investor sentiment.

Original Source: www.fxempire.com

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