As market volatility rose in anticipation of the U.S. Fed’s decision on Tuesday, Bitcoin was found to be consolidating under a critical resistance level. Tomorrow’s Federal Reserve meeting will likely see interest rates increased, as the bank battles inflation. Ethereum moved below $1,600 in today’s session.
Bitcoin
Bitcoin (BTC) was trading below a key resistance level on Tuesday, ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting.
Today’s low for BTC/USD was $20,287.46 after it failed to breach its $20,000.00 ceiling Monday.
In anticipation of the FOMC meeting many expect the Fed to raise rates by 0.75 percent. Market volatility has risen.
The chart shows that price volatility is also a result of a failed rise in price strength. Recently, the relative strength indicator (RSI), was unable to surpass a certain ceiling.
The threat of a rate hike has boosted U.S. dollar strength, which appears to be one of the factors behind today’s consolidation.
BTC will continue to trade below its $28,800 ceiling, until tomorrow’s tension passes.
Ethereum
Ethereum (ETH) fell below $1600, in addition to bitcoin.
Following a peak of $1,630.45 to start the week, the world’s second largest cryptocurrency moved to a low of $1,555.92 today.
This drop in ETH/USD saw it fall below $1,585 at its previous ceiling. Price strength was also affected.
The 14-day RSI currently tracks at 66.71 as of writing. This is slightly above the floor of 65.00.
The index continues to trend higher than this floor and bullish sentiment has remained in ETH. However, prices are moving away from their previous lows.
ETH trades at $1590.79 and traders are trying to return the token above $1600.
Get weekly price analysis emails sent straight to your inbox by registering your email
Are we likely to see the markets consolidating even after this Fed decision? Comment below to share your views.
Images Credits: Shutterstock, Pixabay, Wiki Commons, Nick Beer / Shutterstock.com
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.