Hideo Nakamura On Wednesday, Bitcoin managed to hover slightly above the $29,000 mark in consolidation, just before the Federal Open Market Committee (FOMC) convenes today. Market analysts predict a 0.25% increase in Fed rates, a change that was postponed last month. Meanwhile, Ethereum’s price mostly stayed the same.
Bitcoin
As market participants await the forthcoming Federal Reserve rate verdict, Bitcoin commenced the day’s trading almost at the same price level.
After hitting a low of $29,097.47 on Tuesday, the BTC/USD value saw a slight increase, reaching a high of $29,382.11 earlier today.
This slight rally led Bitcoin to consolidate around the $29,100 support level, a barrier it last broke fully on June 21.
Bitcoin chart by TradingView
In today’s trading, another support level was encountered when the relative strength index (RSI) touched the 42.00 mark.
Since this encounter, the price strength has made a recovery and is currently charted at 42.09.
If the index continues to stay above this level following today’s rate verdict, it’s quite likely that BTC might make a move back towards the $30,000 mark.
Ethereum
Similarly, Ethereum (ETH) too, experienced a consolidation phase on Wednesday, its trading price remaining close to the significant price level of $1,850.
Earlier today, the ETH/USD pair saw a peak at $1,867.32 before retreating to the day’s lowest at $1,849.44.
This fallback coincided with the 10-day (red) moving average stretching its downward crossover with its 25-day (blue) counterpart.
Ethereum chart by TradingView
A crucial point of consideration is the 45.00 mark on the RSI. Although the index is currently in this area, a potential breakout might trigger further reductions.
Should this happen, the next visible support level to monitor closely will be at the 40.00 zone.
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We’d love to know your thoughts. Do you think the Fed should halt rate hikes? Feel free to share your views in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Federal Reserve Rate Hike Impact on Cryptocurrency
What is the expected change in Federal Reserve rates?
The Federal Reserve is widely expected to increase rates by 0.25%.
How did Bitcoin perform ahead of the Federal Open Market Committee meeting?
Bitcoin marginally consolidated above the $29,000 level. After hitting a low of $29,097.47 on Tuesday, BTC/USD marginally rose to a high of $29,382.11.
What was the behavior of Ethereum ahead of the FOMC meeting?
Ethereum remained mostly unchanged and consolidated on Wednesday, trading close to a key price floor at $1,850.
What could be the potential impact of the Federal Reserve rate decision on Bitcoin?
If the relative strength index remains above the 42.00 level after the rate decision, there is a good chance that BTC could move back towards the $30,000 mark.
What could be the potential impact of the Federal Reserve rate decision on Ethereum?
Attention should be paid to the 45.00 mark on the RSI for Ethereum. If a breakout occurs, there might be further declines. In such an event, the next visible support level to pay attention to will be the 40.00 zone.
More about Federal Reserve Rate Hike Impact on Cryptocurrency
- Understanding Bitcoin Consolidation
- Insights into Ethereum Stability
- Overview of Federal Open Market Committee (FOMC) Meetings
- Understanding the Impact of Federal Reserve Rate Hike
- Guide to Relative Strength Index (RSI)
- Understanding Cryptocurrency Trading Charts
6 comments
The rate hike could push BTC back up to 30k. fingers crossed!
Does any1 else think these feds should just keep their hands off? always messing with the rates n all…
gotta keep a close eye on that RSI, folks. If it drops below 40 for ETH, we’re in for a tumble.
Love a good technical analysis. Makes the whole crypto scene seem more real, ya know? Not just numbers and stats.
Bit of a stagnant market, eh? Could do with some action on the ETH front, honestly getting kinda boring…
how bout that btc consolidation… HODL strong ppl!