In the exhilarating world of cryptocurrency, Bitcoin is hitting the brakes just as the Federal Reserve prepares for another interest rate announcement. The digital currency, which recently broke into the $95,000 zone, has seen a slight retreat, casting a shadow of uncertainty over its short-term trajectory. This week’s Federal Reserve meeting, scheduled for May 7, could further shake things up in the crypto sphere.
Bitcoin’s Balancing Act
Bitcoin’s weekend rally hit a snag at $97,895, with the price now hovering around the significant $95,000 level. Market analysts are keeping a keen eye on whether Bitcoin can maintain this critical support. According to Timothy Peterson, a Bitcoin network economist, the digital currency might soar to an all-time high of $135,000—if the stars align. Peterson highlights that a dip in the CBOE Volatility Index below 18, combined with favorable interest rate movements and strong performances in June and July, could set the stage for this bullish run. As explored in Bitcoin price about to ‘blast’ higher as Fed rate cut odds jump to 60%, the potential for a rate cut could further fuel Bitcoin’s upward momentum.
Should Bitcoin defend the $95,000 mark, it could reignite bullish momentum and propel the price toward $100,000 and beyond. However, a slip below the 20-day EMA, currently around $92,106, might spell a downturn, potentially dragging prices to the 50-day SMA at $86,682.
Altcoins: The Bullish Bright Spots
While Bitcoin’s trajectory is under the microscope, several altcoins are showing promising patterns. Hyperliquid (HYPE), Aave (AAVE), Render (RNDR), and Fetch.ai (FET) are each at pivotal points, suggesting potential upward moves.
HYPE is flirting with resistance at $21.50, but bulls are undeterred. Analysts note that the upsloping 20-day EMA and near-overbought RSI could signal a price surge to $25 or even $27.50 if the resistance is breached. Conversely, a drop below the 20-day EMA might see HYPE retreat to $17.35.
AAVE, meanwhile, has bounced back from its moving averages, aiming for the $196 mark. A successful breach could see it climbing to $220 and possibly $240. On the flip side, failure to maintain its current momentum might drag AAVE down to $130.
Render and Fetch.ai: On the Cusp
Render’s price dance around the $4.87 resistance level implies a possible breakout. If bulls succeed, RNDR could climb to $6.20. The 20-day EMA at $4.31 is a critical support level, and a breach could see the token fall to $3.80.
Fetch.ai is also in a precarious position, testing the 20-day EMA at $0.65. A rebound might push FET to $0.84, with further gains to $1.09 if resistance breaks. Bears, however, are eyeing a drop to the 50-day SMA at $0.54 if the 20-day EMA fails to hold.
Market Volatility Ahead?
The crypto markets are bracing for potential volatility as traders anticipate the Federal Reserve’s interest rate decision. While the CME Group’s FedWatch Tool suggests a low probability of a rate cut, the announcement could still trigger decisive market moves. For more insights on how these economic factors might influence Bitcoin’s trajectory, see Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally.
As investors navigate these turbulent waters, the broader question remains: can Bitcoin and its altcoin counterparts sustain their bullish trajectories? Or will the looming rate decision and market dynamics act as a headwind? For now, crypto enthusiasts are on high alert, poised to adapt to the shifting sands of the market landscape.
Source
This article is based on: Bitcoin price cools going into Fed rate hike week, HYPE, AAVE, RNDR, FET still look bullish
Further Reading
Deepen your understanding with these related articles:
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- Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow
- Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
