The Federal Reserve's third "hawkish rate cut" of the year has been implemented, causing the cryptocurrency market to decline accordingly. Bitcoin and Ethereum continued to decline throughout the day, giving back all gains since Tuesday. During the Asia-European session, they remained near lows without rebounding, and market sentiment turned bearish.

Before and after the US market opened, the market reversed due to dual positive signals. The number of initial unemployment claims in the US rose by the largest weekly increase since the pandemic, which reinforced expectations of rate cuts due to soft employment; the reappointment of the Federal Reserve regional chair removed policy uncertainty. Supported by these factors, the two major cryptocurrencies stopped falling and rebounded: Bitcoin rebounded above $92,000 after finding support; Ethereum stabilized around $3,240.

Technically, there are signs of both recovery and constraints. The four-hour MACD energy bars for Bitcoin are shrinking, indicating waning rebound momentum; the hourly RSI entered the overbought zone, suggesting short-term correction pressure. The Bollinger Bands are flattening, indicating limited rebound space, and the white session is expected to continue oscillating. Resistance for Bitcoin is around $93,000-$94,000, with support at $91,000 and $90,000; Ethereum resistance is at $3,270 and $3,350, with support moving up to the $3,150-$3,100 range.

Tonight, several Federal Reserve officials will give speeches, which will be the focus. There are significant disagreements within the Fed on the rate cut path, with hawkish and dovish signals intertwined. Officials’ statements may break the current oscillation pattern. Investors should be cautious of volatility caused by fluctuating policy expectations and pay close attention to their remarks on the subsequent easing pace.