As markets prepare for an eventual 100-basis point increase in the interest rates of the United States central banks, Bitcoin dropped below $19,000 Wednesday. While the consensus rate of a rate hike remains at 0.75% some think that a 1.00% increase could be possible, given the historically high inflation levels. Ethereum traded slightly above $1,300, despite trading lower in the news.
Bitcoin
Bitcoin (BTC) fell below $19,000 earlier in the day, as traders began to prepare for today’s Federal Open Market Committee (FOMC) meeting.
Market uncertainties remain high as there is speculation about the Fed’s ability to raise rates up to 100 basis points.
BTC/USD dropped to $18,813.46 today after reaching a high of $19,600 earlier in the day.
The chart shows that the most recent fall has put the 10-day moving average (red), on the verge of crossing with its counterpart (blue),
If this happens, bitcoin could slip to $19,000 and potentially fall below $18,000 for its first time since June.
As of writing, the token is trading at $19,153.66, as prices continue to consolidate prior to this afternoon’s announcement.
Ethereum
Ethereum (ETH), which was consolidating also on hump Day, saw the token trade marginally higher than the $1,300 mark.
After a Tuesday high of $1.378.68, the ETH/USD traded at an intraday low today of $1.319.20. This was due to bearish sentiment in crypto markets.
In recent days traders have shown some reluctance to hold onto long-term positions in anticipation of the rate rise.
A collision of the 14-day relative strengths index (RSI) caused uncertainty to rise, with the index reaching a resistance level.
At the time of writing, index tracking is at 38.43. That is just marginally lower than the ceiling of 39.00. The main barrier to price rise is currently at 39.00.
There is still a lot of fear on the market. However, ETH bulls might reenter if there is a break through of this ceiling.
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