Popular crypto analyst Justin Bennett breaks down Bitcoin (BTC) and Ethereum (ETH) after the latest Fed rate hike
A widely followed crypto analyst says that the Bitcoin (BTC) and Ethereum (ETH) markets are broadly the same after yesterday’s Federal Open Markets Committee (FOMC) meeting.
In a new edition of his Cryptocademy newsletter, trader Justin Bennett breaks down BTC, ETH and the US Dollar Index (DXY) going forward.
Says Bennett of BTC,
“BTC moved into today’s FOMC, so the pullback of the 50bps (basis points) hike was no surprise as late longs were washed out. BTC also retested trendline support at $17,500 today, which is a level I mentioned in yesterday’s video. It going to close below that and $17,300 to open up lower levels. Alternatively, resistance for BTC will come at $18,200 and $18,500.”
Looking at the second largest crypto by market capitalization, Ethereum, Bennett considers several options for the leading smart contract platform.
“ETH is down today after testing the $1,350 highs for the second time. However, the $1,300 area (specifically $1,297) still holds as support. It will take a daily close below that for Ethereum to turn bearish towards $1,235 and potentially lower.” On the other hand, a daily close above $1,350 would open up the $1,420 area.”
Bennett also looks at the DXY, a measure of the strength of the US dollar against a basket of assets. For Bennett’s purposes, he looks at the DXY against a basket of crypto assets.
Generally speaking, a bearish DXY is bullish for crypto and vice versa.
After the FOMC meeting, Bennett says the DXY is lower today.
“DXY is lower today on a business-as-usual rate hike and Powell press conference. However, it remains above the 103.60 area for now, which is the location of an important horizontal level and trendline from November 15. DXY must close above 104.50 to re-expose 105.60 and below 103.60 region to open 102 to 103 area.”
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Featured image: Shutterstock/Liu zishan
