Bitcoin and Ethereum experienced a period of consolidation as they prepared for the release of the U.S. Federal Open Market Committee (FOMC) minutes, causing Bitcoin to dip below $31,000. Investors eagerly awaited insights into the Fed’s potential plans for interest rate hikes this year. Meanwhile, Ethereum faced a second consecutive session of decline.
On Wednesday, Bitcoin (BTC) entered a consolidation phase in anticipation of the FOMC minutes from the previous month’s meeting.
During the session, BTC/USD reached an intraday low of $30,656.03, following a previous peak of $31,106.00.
This decline caused Bitcoin to move further away from its one-year high of $31,443, which was achieved last Friday.
Bitcoin’s chart, as observed on TradingView, indicates a shift in sentiment towards bearish, as the relative strength index (RSI) failed to break the 70.00 level.
At present, the RSI stands at 63.76, just below a support point of 63.99.
If the current downward momentum persists, the next significant support level is projected to be around 59.00, potentially leading to a collision in the coming days.
Furthermore, Ethereum (ETH) also experienced a decline for the second consecutive session, as it struggled to sustain a breakout above a crucial price ceiling.
After reaching a high of $1,964.89 on July 4, ETH/USD dropped to a low of $1,920.79 earlier in the day.
This downturn in Ethereum’s price follows its inability to maintain the breakout above the $1,970 resistance level achieved on Monday.
Based on the TradingView chart, the RSI fell below its own ceiling at 61.00 and currently sits at 57.54.
Bears anticipated a shift in momentum after the price strength entered overbought territory over the past two weeks.
Nevertheless, there is potential for bullish sentiment to return following the release of the FOMC minutes later in the day.
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Feel free to share your thoughts and expectations regarding the FOMC minutes in the comments section below.
Frequently Asked Questions (FAQs) about cryptocurrency consolidation
What is the significance of the FOMC minutes for Bitcoin and Ethereum?
The FOMC minutes provide insights into the U.S. Federal Reserve’s potential plans for interest rate hikes, which can have an impact on the overall market sentiment and price movement of cryptocurrencies like Bitcoin and Ethereum.
Why did Bitcoin drop below $31,000?
Bitcoin experienced a drop below $31,000 as markets consolidated and investors awaited the release of the FOMC minutes. The decline in price could also be influenced by changes in market sentiment and technical factors such as the failure of the relative strength index (RSI) to break a certain level.
Why did Ethereum fall for a second consecutive session?
Ethereum saw a decline for a second consecutive session due to a combination of factors. It failed to sustain a breakout above a key price ceiling, and the RSI fell below its own ceiling. Additionally, market sentiment and overall market conditions can influence the price movement of Ethereum and other cryptocurrencies.
What are the next support levels for Bitcoin and Ethereum?
For Bitcoin, if the current downward momentum continues, the next visible support level appears to be around 59.00. As for Ethereum, the specific support levels are not mentioned in the provided text, but further analysis and monitoring of price movements would be required to identify potential support levels.