BTC Bulls Target $21,000 While ETH Breaks $1,500 Resistance

During a breakout session on Tuesday, bitcoin (BTC) and ethereum (ETH) returned to $20,000 and $1,500, respectively. The breakout session was driven by a shift in market attitude towards the Fed, with economic indicators revealing fractures in the US economy. The technical indications have turned bullish, and the momentum supports a strong opening on Wednesday.

On Tuesday, bitcoin (BTC) gained 3.95 percent. BTC reversed a 1.25 percent decline from Monday to close the day at $20,104. Notably, BTC closed the day at $20,000 for the first time since October 5 while avoiding sub-$19,000 territory for the fourth session.

BTC fell to a morning low of $19,251 due to a negative morning. BTC rose to a late-afternoon high of $20,432 while avoiding the First Major Support Level (S1) at $19,138. BTC was able to surpass the Major Resistance Levels. BTC fell through the Third Major Resistance Level (R3) at $20,258 due to a late pullback.

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On Tuesday, Ethereum (ETH) rose 8.63%. ETH reversed Monday's loss of 1.47% to conclude the day at $1,460. Notably, ETH reached $1,500 for the first time since September's middle.

Due to a rocky start to the day, ETH fell to a low of $1,335 early on. ETH surged to a late-afternoon high of $1,525 after avoiding the First Major Support Level (S1) around $1,325. ETH surpassed the Major Resistance Levels for the day. The Third Major Resistance Level (R3) at $1,440 provided support late in the day.

On Tuesday, US economic figures bolstered wagers that the Fed will take a less aggressive stance in December. Mary Daly, a member of the Federal Open Market Committee, and a Wall Street Journal article published last Friday both referred to the Fed taking its foot off the throttle.

This week, economic statistics demonstrated the Fed's impact on the economy. The preliminary private sector PMIs for October revealed a more pronounced contraction in the services sector, along with a decline in consumer confidence.

The housing market was adversely affected by the impact of rising interest rates on mortgage rates, as home price growth slowed significantly.

There are currently no significant statistics for markets to consider. FOMC members are, however, unable to alter the narrative until November 3, due to the blackout period, which supports the bullish morning session.

As of this morning, the FedWatch Tool placed the likelihood of rate hikes in November and December at 95.1% and 47.2%, respectively. Prior to one week, the probability of a 75-basis-point increase in December stood at 77.0%.

Elon Musk's ambitions to acquire Twitter (TWTR) and news of CFTC Chairman Rostin Behnam classifying BTC and ETH as commodities are also contributing to the increase.