Bitcoin was trading marginally higher ahead of Wednesday’s United States FOMC meeting, where it is expected that the Federal Reserve will increase interest rates. Many expect the Fed to raise interest rates by more than 75 basis points, as inflation remains high. After briefly dropping below $1,300 Monday, Ethereum also rose.
Bitcoin (BTC) was marginally higher on Tuesday, as markets began to prepare for tomorrow’s Federal Open Market Committee (FOMC) meeting.
BTC/USD hit an intraday high of $19,639.48 earlier in today’s session, as prices rebounded from losses to start the week.
The move came as bulls rejected an attempt to move below yesterday’s floor of $18,645, instead using this as a point of reentry.
Looking at the chart, today’s gains have seen the 14-day relative strength index (RSI) move away from yesterday’s bottom below the 38.00 point. Currently the RSI tracks at 39.69.
Next, bulls will need to recover the $20,000 level. However, this won’t be easy given the market volatility.
At the time of writing, it is currently trading at $19117.06. The earlier gains, which were somewhat lower, have been slightly diminished by the rates decision.
Similar to bitcoin, ethereum (ETH) also attempted to move higher on Tuesday, following a move to a two-month low during yesterday’s session.
The ETH/USD pair, which had a low of $1,287.72 at the beginning of the week, climbed to $1,388.27 later in the day.
Ethereum bulls entered the market again, just as with BTC. This was after a decline below a critical support level, in this case the floor at $1,315.
Despite the fact that the 14-day RSI remains in bearish territory or is oversold, many believe further falls could be on their horizon.
The index currently tracks at 36.90. However, some traders could target a support level around 34.60.
Another reason to expect a move below $1,000 is the downward crossing of moving averages.
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