We are seeing signs of recovery all over the crypto market. I called the low on August 5 and said that we would not break below that level again. We gave it a scare on September 6, but the market has since shown signs that new highs may be in the near future.

Bitcoin Showing The Right Signs

Bitcoin has now established a higher low on September 6th, and is attempting to reclaim the $60,000 support level. After hitting a low of under $53,000 on the 6th, BTC is up more than 13%. It has yet to reclaim any major levels on this latest push, however this move is at least a bit inspiring. The key level to watch out for moving forward is to see if Bitcoin can top its recent high of $65,000. That would begin a pattern of both higher lows and higher highs. Should we see that happen in the next few weeks I would be very surprised if the bulls don’t pile in on the action.

This has opened up the doors for price moves in some select altcoins as well. These are the signs we need to see if this bull market is on its way to a second surge.

However, I want to raise caution for one last key event: the September 19 FOMC event. A lot hinges on how the crypto market reacts to the likely rate cut that is coming on the 19. Will the market be happy with a potential 25 basis points cut, or will it desire more?

We will find out very quickly, which is why September 20th is the key date that I am looking forward to. If Bitcoin is able to hold support or break through a higher resistance level on the 20th it would be a huge sign of strength. Conversely, if BTC falls in the 24-48 hours following the FOMC event then a larger crypto rally is unlikely to take place in the next few weeks.

Ethereum’s Tide May Be Changing

It really remains key what happens to Bitcoin, because at this point it is completely leading the rest of the crypto market. Ethereum has not been able to break out against its Bitcoin pair, and I believe investors are simply waiting for confirmation that the next leg of the bull market has begun.

I also think there is reason to believe that as soon as Bitcoin breaks its downtrend Ethereum could be ready to run. Looking at the last couple of months, it appears that ETH is breaking through the downturn that began in July. That means Ethereum is one step closer to breaking out of the longer term downtrend its been in since this spring. ETH will need to break and hold above $3,000 before we get our hopes up that the bigger rally has started. In the shorter term, I would feel a lot more confident should ETH muster up a push above $2,550.

Altcoins Update

Elsewhere around the crypto market we are seeing signs of slow recovery. Unlike Bitcoin’s quick v-shaped bounce most altcoins are in the early stages of a gradual u-shaped recovery. Sure, there have been some breakouts in select altcoins, but hey, this is a large market. You can’t generalize the entire altcoin space.

Having said that, I do think the success of most altcoins depends on Bitcoin’s ability to establish an uptrend. Luckily, I think there are good odds that the uptrend materializes within the next month. This could be a good time to load up on some altcoins that you have conviction in, as I think these are likely the best prices you’ll get in the months ahead.

Final Thoughts

The crypto market is showing promising signs of recovery, but we’re not out of the woods just yet. Bitcoin remains the key player, and its performance will set the tone for the entire market moving forward. A higher low has been established, but we are still waiting for BTC to reclaim critical levels and break the recent $65,000 high, which could kick off the next major rally.

Altcoins are slowly following Bitcoin’s lead, and many are poised for a potential breakout if BTC can solidify its uptrend. Ethereum, in particular, seems primed for a move once Bitcoin clears its own downtrend. However, the market still hinges on key events—most notably the FOMC meeting on September 19th. How the crypto market reacts to the rate cut could provide the final piece of the puzzle for a broader market rally.

Until then, caution and patience are key. Bitcoin is at the forefront of this market cycle, and its moves over the next couple of weeks will be critical in determining whether we see another leg up or face further consolidation. Stay alert, watch the key levels, and be prepared for what could be a defining moment for the rest of the year.

Editor’s Note: Cryptocurrency has been the best returning asset class of the last decade and is know for its parabolic bull markets. It is also a key to a truly diversified portfolio and one of the best hedges against the potential risks that lie ahead in markets. But you need to act now before institutions gobble it all up.

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This article previously appeared on Investing Daily.