
Key Takeaways:
*Total market capitalization surged 1.75% to near $3.92 trillion, with Bitcoin breaking $114,000 and Ethereum up over 5%, signaling renewed bullish momentum.
*Massive inflows into U.S. spot Bitcoin and Ethereum ETFs and strategic accumulation by crypto whales have helped establish a firmer price floor.
*Growing expectations of a Fed rate cut this week are enhancing risk appetite and driving fresh demand for digital assets.
Market Summary:
The cryptocurrency market has staged a pronounced recovery over the past 24 hours, with the total market capitalization rising approximately 1.75% to approach the $3.92 trillion mark. This upswing, led by Bitcoin breaching the $114,000 level and Ethereum jumping more than 5%, signals a significant fine-tuning in market sentiment following weeks of strong selling pressure and cascading liquidity.
The shift in investor psychology is starkly evident in the Crypto Fear & Greed Index, which has surged to a neutral reading of 50 from a deeply fearful 24 just days prior. This improvement is underpinned by two fundamental pillars of support. Firstly, the U.S. spot Bitcoin and Ethereum ETFs continue to attract massive capital, with recent daily inflows exceeding $1 billion, providing a substantial and sustained institutional bid for the core assets. Secondly, the recent sell-off was perceived by large-scale investors, often referred to as “crypto whales,” as a significant discount, prompting accumulation at lower levels which has helped solidify a price floor and fuel the current rebound.
Adding further tailwinds to the rally is a buoyant macroeconomic expectation within the market. Investors are increasingly pricing in a high probability of a Federal Reserve rate cut this week, with expectations for an additional easing move before the conclusion of 2024. This prospect of lower interest rates is bolstering the appeal of non-yielding, risk-sensitive assets like cryptocurrencies, contributing to the renewed buying pressure. While the rebound is constructive, the market’s near-term trajectory will be ultimately validated by the Fed’s forthcoming policy decision and its subsequent guidance.
Technical Analysis

BTC has executed a technically significant move, breaking decisively above its downtrend resistance line near the $111,000 mark. This bullish breakout, following a period of strong support around the $106,000 level, suggests a potential reversal of the previous bearish structure and establishes a positive near-term bias.
The immediate focus now shifts to the upcoming resistance test near the $117,350 level. For the bullish trajectory to remain credible, it is crucial for BTC to consistently maintain its footing above the key psychological support at the $112,000 mark. A successful defense of this level would indicate underlying strength and could pave the way for a challenge of higher resistance zones.
The improving technical picture is further supported by a notable shift in momentum indicators. The Relative Strength Index (RSI) has rebounded and crossed above its mid-point, reflecting a return of buying pressure. Simultaneously, the Moving Average Convergence Divergence (MACD) has triggered a bullish golden cross from a depressed level, signaling that the prior bearish momentum is decisively easing. The confluence of this breakout and the improving momentum indicators creates a constructive setup for further potential upside, contingent upon BTC’s ability to consolidate above the $112,000 support.
Resistance Levels: 117,350.00, 123,230.00
Support Levels: 112.445.00, 108,240.00
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