BTC Falls From 5-Week High As Traders Continue To Digest Fed Decision – Market Updates Bitcoin News
Bitcoin fell from a five-week high on Thursday as markets continued to react to the latest interest rate decision by the Federal Reserve. The US central bank moved to raise interest rates by 50 basis points as expected, while laying the groundwork for a slower pace of increases in the coming months. Ethereum also pulled back from recent highs, falling below $1,300 earlier today.
Bitcoin
Bitcoin (BTC) again traded below $18,000 as bears re-entered the market after the latest Fed meeting.
After a move to a five-week high of $18,318.53 on Wednesday, BTC/USD fell to an intraday low of $17,642.51 earlier today.
The drop apparently comes as traders moved to lock in profits, after recording three consecutive days of gains.
Looking at the chart, this reversal in price coincided with the 14-day relative strength index (RSI) failing to break out of a ceiling of 60.00
At the time of writing, the index is following the 57.17 mark, with the next visible support point at 54.00.
Should price strength find its way to this floor, it is likely that BTC will trade near the $17,200 point.
Ethereum
In addition to bitcoin, ethereum (ETH) also fell on Thursday, following the US Federal Reserve’s decision to raise interest rates by 0.5%.
After the decision, Fed Chair Jerome Powell gave some market guidance saying they are “approaching the level we think [is] sufficiently restrictive.”
ETH/USD fell to a low of $1,280.52 earlier in today’s session, less than 24 hours after hitting a high of $1,346.17.
As seen in the chart, the decline comes because ETH failed to sustain a breakout from the long-term ceiling of $1,300.
Overall, prices are down nearly 4% from yesterday’s high, with the RSI at 50.92, which is marginally above a floor of 50.00.
The Bulls will see this as a positive, and have hopes that today’s sell-off will not continue for the rest of the week.
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