BTC continued to trade below $40,000 prior to Wednesday’s FOMC meeting, as crypto markets anticipated a potential rate hike. ETH was also trading close to its long-term support level, with many hoping for an end to current bearish sentiment, after tomorrow’s announcement.
Bitcoin
BTC was trading below $40,000 on Tuesday, as the world’s largest cryptocurrency was marginally above its long-term price floor.
BTC/USD dropped to $38,156.56 earlier today. This is less than $600 from the recent support level at $37,500.
After a bearish April that saw BTC drop by almost $10,000, some predicted a similar fall in May.
Many believe that a $30,000 move could still be possible. Looking at the chart shows that if the ceiling of the 14-day RSI holds firm, then we might see further declines.
If the RSI falls into the 30s and continues to decline, bears may increase selling pressure and consider taking bitcoin to a $33,900 floor.
So far this year, we’ve seen prices hit that level on two occasions: Jan. 24 and Feb. 24.
Ethereum
ETH traded at a low of $3,000 on Tuesday after reaching its weekly price floor.
Following a low of $2,785.52 during Monday’s session, ETH/USD was able to reach a high of $2,874.15 earlier today.
Even though ethereum was trading about 1% higher on Tuesday despite trading around 5% higher in the previous seven days and almost $700 less over the course of the last month, it is still trading approximately 5% lower over the last week.
Currently the 14-day RSI stands at 43.40. This has been a floor for a long time and, should it act like such again, this could lead to a possible rebound.
The price target for ETH is $2,950. However, if bulls rise up and push the RSI past 40, then ETH will most likely surpass $3,000.
After the Fed meeting, will market volatility be clear? Comment below to share your views.
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