The Federal Reserve cut rates on July 31, 2019, for the first time since 2008, which comes across as an unwarranted move given the strong footing of the economy. President Trump has been critical of the Fed’s monetary policy since the beginning of his term. A rate cut at this time could be a means to appease the President. A rate cut could attract investors to cryptocurrencies like Bitcoin.
It’s an interesting time to analyze Bitcoin’s reaction to the Fed rate cut. In this article we’ll analyze price action of major cryptocurrencies.
Bitcoin is currently trading at $9,945.46 and the bulls are trying to propel the price above critical support of $9,400. If Bitcoin doesn’t cross $11,000, then it will start along the downtrend line and $9,900 would be a critical resistance.
If BTC/USD falls below $9,080 there will be selling at high levels. The next support after $9,080 is $7,500.
ETH/USDEthereum (ETH) has started a recovery from a week long slump and bulls will now try to push the price above $222. If successful, it may hit $230 and then $250. There is minor resistance at $235, above which Ethereum is likely to gain strength.
Contrary to our expectation, if the ETH/USD pair fail to rise above the overhead resistance and turns down, it will show selling at higher levels.