BTC, ETH Consolidate As Some Expect Fed To Raise Prices 1% – Bitcoin News
Bitcoin fell below $19,000 on Wednesday, as markets braced for a potential 100 basis point interest rate hike by the US Federal Reserve. Although consensus for a rate hike remains at 0.75%, some believe that with inflation remaining at historically high levels, a 1.00% increase could be on the cards. Ethereum remained lower on the news, trading marginally above $1,300.
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 uncertainty remains high as speculation mounts over whether the Fed may go as far as raising interest rates by 100 basis points.
As a result, BTC/USD fell to a low of $18,813.46 earlier today, a day after peaking above the $19,600 level.
Looking at the chart, this latest drop has pushed the 10-day (red) moving average to the brink of a bearish cross with its 25-day (blue) counterpart.
Should this happen, we could see bitcoin not only fall below $19,000, but potentially fall below $18,000 for the first time since June.
At the time of writing, the token is trading at $19,153.66, as prices continue to consolidate ahead of this afternoon’s announcement.
Ethereum
Ethereum (ETH) also consolidated on the hump day, with the token trading marginally above the $1,300 level.
After a high of $1,378.68 on Tuesday, ETH/USD moved to an intraday low of $1,319.20 earlier today as sentiment in the crypto markets remained bearish.
Traders have been cautious in recent days, opting to liquidate positions as opposed to holding on to longs ahead of the interest rate hike.
The increase in uncertainty also came after a crash in the 14-day relative strength index (RSI), where the index hit a resistance point.
At the time of writing, the index at 38.43, which is marginally below a ceiling of 39.00, is currently tracking the main obstacle preventing prices from climbing.
Although there is still a high level of fear in the market, should we see a breakout of the aforementioned ceiling, ETH bulls could re-enter the market and attempt to take the price above $1400.
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Will the Federal Reserve decide to raise interest rates by 0.75% or 1.00% today? Leave your thoughts in the comments below.
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