Bitcoin Bulls Take Aim at $70K as Post-Rate Cut Rally Gains Steam
- Bitcoin’s momentum strengthens as it approaches crucial resistance levels.
- Ethereum shows signs of recovery, with key support and resistance levels in play
- Both cryptos face a pivotal weekend; profit-taking may test support levels, while strong buying could fuel bullish momentum.
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Bitcoin‘s recovery gained momentum this week after the Fed’s rate decision, driving the cryptocurrency toward a key resistance level.
Last week, expectations of a 50 basis point rate cut fueled Bitcoin’s rally, but weekend profit-taking caused a slight pullback to the $58,300 range. This limited retreat signals the potential for the uptrend to continue.
The larger rate cut did materialize, and the market has responded positively, pricing it in for both the medium and long term.
Bitcoin broke through the middle of its descending channel at the $61,200 mark with strong volume, but it now faces short-term resistance around $63,600.
This level, a key Fibonacci retracement from the August recovery, could lead to further profit-taking over the weekend.
If this happens, Bitcoin may test support in the $60,700–$61,200 range, between the channel’s middle line and the 3-month EMA.
Successfully holding this level could pave the way for a breakout past $63,600, setting up a move toward the $68,000 range. However, resistance at $65,950 (Fib 0.618) remains in play. 
With Bitcoin’s short-term EMAs showing a positive crossover, the trend looks strong.
If Bitcoin avoids a pullback and breaks through $65,950 quickly, it may challenge the critical $69,270 resistance zone, a key level to reverse the downtrend that began in March.
Breaking out of the descending channel and moving toward $70,000 would signal the end of the lower-high formation and put Bitcoin on track to set new highs.
On the flip side, failure to hold the $63,600 resistance and a drop below $60,700 could lead to a bearish scenario, with Bitcoin retreating to $58,300.
Ethereum’s Critical Support and Resistance Levels
Ethereum has lagged behind Bitcoin, struggling to recover after a sharp August selloff. ETH hit as low as $2,150 in early September before finding support at this year’s low.
This week, Ethereum made a crucial move, breaking out of a major resistance zone after attempting to recover for the third time since May.
Now back in the $2,500 range and above its short-term descending trendline, Ethereum’s momentum has improved. The last time ETH broke this trendline was in July, but panic selling after the Bank of Japan’s rate hike reversed its gains.
Currently, Ethereum is trying once again to stay above the trendline. The 0.236 Fibonacci level at $2,480 has become solid support, and as long as ETH holds above it, the next targets are $2,640 and $2,770.
Breaking through these levels would signal a trend reversal, opening the path to $2,900. On the downside, the short-term EMAs and a resilient stochastic RSI, which remains above 80, continue to support Ethereum’s recovery.
However, if ETH falls below $2,480, a deeper downtrend could follow, with the trendline likely guiding its decline.
Weekend Outlook for Bitcoin and Ethereum
The weekend will be pivotal for both Bitcoin and Ethereum. If profit-taking hits, support levels will be key to watch. A strong defense by buyers could set the stage for a bullish start to the week, but a failure to hold these levels could bring renewed selling pressure.
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