Big economic headlines overnight from the US, as the Federal Open Market Committee (FOMC) announces they are planning for interest rate cuts for 2024. While this was speculated for some time, this is the first time the official committee has provided a dovish sentiment in their own official statements. 

The significance of this can’t be downplayed, especially in crypto land, as we are trading and investing in a very sensitive and heavy on-risk asset class. Looking forward to seeing how the market continues to digest this news into next week. 

Bitcoin – BTC

Bitcoin has seen a notable slump early this week, dragging the market down. Notably, altcoins did feel the drop harder, which is to be expected and serves as a reminder of what to expect when we see retracements in the market. 

Let’s dive into where we stand in the market at this time of writing. 

Bitcoin is currently at a key decision point. We are at the mid-range of a weekly order block, which is frequently a place where bulls or bears need to show their hand. 

If we continue to make higher highs on lower time frames, we could expect an advance towards the March 2022 High and 61.8% Fibonacci level of USD $48,000. 

Alternatively, failure to get above this key level by next Monday 10 AM AEST may be setting up more of a retracement towards the low USD $40’s for Bitcoin. 

What’s key is that for altcoins to continue breaking out, Bitcoin needs to either rally or ideally, hold steady and spend some time going sideways. 

Avalanche – AVAX

After last night’s news release, Avalance is a standout performer, rising over 5% within the first 5 minutes of the US PMI metric being released ahead of the FOMC meeting. 

This is behaviour to pay attention to and an asset to continue watching for strengths and capital rotations from other cryptos. 

Potential targets for AVAX is the next key Fibonacci level which is also around a similar area as a key monthly resistance area, between USD $63.11- USD $69.95. 

We are at a key price area, the mid-range of a monthly fair value gap. These areas often result in bulls and bears butting heads until the market lands on a direction for the next move. Failure to break above and close higher than this mid-range and Fibonacci level may fail to break out and go higher. 

Helium – HNT

Like Avalanche, Helium has shown strength recently and was a top performer overnight. We’ve broken weekly resistance areas and continued green for weeks. While there could be a pullback if the market were to fail to continue higher, there are still some technical levels of interest higher than the price. 

The next major resistance level for HNT above the current price is around the monthly key resistance level and 38.2% Fibonacci level –  USD $17.29 to USD $22.17. 

Similar to AVAX, should BTC fail to hold steady, we could expect some kind of retracement before being able to move higher to these higher levels.