BTC Consolidates As Markets Prepare For 0.75% Rate Hike – Market Updates Bitcoin News
Bitcoin consolidated below a key resistance level on Tuesday as market volatility increased ahead of the upcoming US Federal Reserve decision. Tomorrow’s Federal Reserve meeting is likely to see interest rates rise, as the bank battles inflation. Ethereum moved below $1,600 in today’s session.
Bitcoin
Bitcoin (BTC) traded below a key resistance level on Tuesday, ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting.
After a failed breakout of the $20,800 ceiling on Monday, BTC/USD fell to a low of $20,287.46 earlier today.
Uncertainty in the market has increased in anticipation of the FOMC meeting, and many expect the Fed to raise interest rates by 0.75%.
As seen in the chart, price volatility also comes after a failed increase in price strength, with the Relative Strength Index (RSI) recently failing to breach a ceiling of its own.
The threat of a rate hike has boosted US dollar strength, which appears to be one of the factors behind today’s consolidation.
BTC will likely continue to hover below the $20,800 ceiling until tomorrow’s excitement is over.
Ethereum
In addition to bitcoin, ethereum (ETH) also declined on Tuesday, falling below $1,600 in the process.
After a high of $1,630.45 to start the week, the world’s second largest cryptocurrency moved to a low of $1,555.92 today.
The drop saw ETH/USD plunge below the recent ceiling of $1,585, with price strength also falling.
At the time of writing, the 14-day RSI is being tracked at 66.71, which is marginally above a floor of 65.00.
As the index continues to trend above this floor, bullish sentiment appears to have persisted in ETH, with prices now moving away from previous lows.
ETH is currently trading at $1,590.79, with traders trying to send the token back above $1,600.
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Could we see markets continue to consolidate themselves after the Fed decision? Leave your thoughts in the comments below.
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