Crypto update: investors await the US Fed’s decision as Bitcoin rises and ETH falls.

Following a relatively calm weekend, the cryptocurrency markets displayed hesitant indications of recovery on Monday, with significant digital assets exhibiting little volatility. Leading the rising trend and keeping its position above the pivotal $116,000 barrier, Bitcoin (BTC) established a stable tone for the market.

Analysts stated that despite the slight increases, there is still caution on the near-term prognosis.

Bitcoin was up 0.46 percent over the previous day, trading at $116,370 at the time of the last check. Throughout the session, the cryptocurrency fluctuated between $114,903 and $116,181, as reported by CoinMarketCap. Bitcoin became the greatest digital asset in the world when its market capitalization remained stable at $2.31 trillion and its daily trading volume increased to $35.24 billion.

Additionally, the market cap domination of Bitcoin saw a steep decline from 66% to 57.2%, suggesting that altcoins have outperformed BTC in recent weeks. According to CoinSwitch Markets Desk, the main factors influencing the flagship currency include technical patterns, like closing a futures gap (CME gap) that traders are keeping a careful eye on, and the expectation of US rate cuts.

Bitcoin faces strong resistance at $120,000

Harish Vatnani, head of trade at ZebPay, stated that the asset is up against a lot of resistance at $120,000 and $125,000. “Bitcoin, to rally further, has to break, close, and sustain above these resistance levels, whereas $105,000 and $100,000 will act as strong support for BTC,” Vatnani stated.

However, according to Giottus CEO Vikram Subburaj, Bitcoin has not yet demonstrated a clear breakout. “If $114,000 doesn’t become a strong basis, the move could fade. A surge through $117,000, though, may swiftly reverse the trend, Subburaj stated.

Analysts believe that market players generally share the expectation that authorities would lower rates by at least 25 basis points, and recent positive macroeconomic data from the US supports this belief.

“Markets are still range-bound overall, but if policy signals are more obvious, volatility may quickly return. According to Subburaj, now is a fantastic opportunity for investors to get into the market at a fair price and continue building up.

Ethereum faces resistance at $4,760 – $5,000

The price of Ethereum (ETH), meanwhile, dropped on Monday. ETH was trading at $4,660 at the time of the latest check, down 0.35 percent over the previous day. Throughout the day, Ethereum’s price varied between $4,581 to $4,681. Even with recent increases, ETH is still almost 6% below its most recent high of $4,953, which was reached on August 25 of this year.

Technically speaking, Ethereum has recovered from early-September lows and is currently consolidating between $4,600 and $4,700, according to the CoinSwitch Markets Desk. “If bullish momentum continues, there is resistance up ahead at about $4,760 and potentially toward $5,000. The range of key support is roughly $4,550 to $4,650.

Additionally, sell-side pressure is being tightened by institutional flows through ETH ETFs and declining exchange reserves, which is improving sentiment. Speculative demand is being fueled by the Fed’s anticipated rate decrease on September 17. However, there is a “catch”: longer-term Treasury yields may continue to rise as a result of inflation, which would reduce some of the possible tailwinds for Bitcoin, according to the experts at CoinSwitch Markets Desk.

Altcoin market snapshot