Prior to the forthcoming interest rate announcement by the U.S. Federal Open Market Committee (FOMC), Bitcoin witnessed a slight pullback from its recent peak levels. Similarly, Ethereum also conceded some of its gains in the day’s trading session.
Bitcoin commenced the day with a minor dip as investors and traders geared up for the much-awaited decision on interest rates by the Federal Reserve.
The BTC/USD pair reached an intraday nadir of $26,918.32 on Wednesday, descending from a zenith of $27,488.76 just the day before.
Apart from the impending interest rate verdict, the FOMC is also slated to release an economic projection. This could offer critical insights that might shape the trajectory of future monetary policies.
Bitcoin chart by TradingView
A contributing factor to Bitcoin’s price reduction was the movement in the Relative Strength Index (RSI), which descended below a threshold level of 60.00.
Currently, the index is oscillating around 57.08 and seems to be gravitating toward a support level pegged at 55.00.
Despite today’s downturn, the prevailing market sentiment for Bitcoin remains predominantly bullish. The day’s decline is chiefly attributed to investors choosing to lock in profits in anticipation of the Federal Reserve’s forthcoming statement.
Ethereum (ETH) experienced a similar downward trajectory in today’s market activity, which is largely attributable to traders deciding to capitalize on previous gains.
After reaching a pinnacle of $1,669.02 the previous day, the ETH/USD pair fell to an intraday low of $1,621.36.
As a consequence, the second-largest cryptocurrency by market capitalization is now hovering close to a critical support level at $1,620.
Ethereum chart by TradingView
The price has shown signs of recovery, with Ethereum being quoted at $1,631 at the moment of this report. This rebound seems to stem from market participants opting against a potential breakout.
The failure of an earlier breakout endeavor appears to be the underlying reason for Ethereum’s slump, especially with the RSI unable to ascend beyond a 49.00 threshold.
The RSI is currently poised at 45.72, and a lower boundary of 40.00 is being eyed as a potential target by those engaging in short selling.
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How will the forthcoming decision on interest rates by the FOMC influence the cryptocurrency markets? We welcome your opinions in the comment section below.
Frequently Asked Questions (FAQs) about FOMC interest rate decision
What is the main focus of the article?
The main focus of the article is to provide a technical analysis of Bitcoin and Ethereum in the context of the upcoming U.S. Federal Open Market Committee (FOMC) interest rate decision. The article discusses how both cryptocurrencies have seen market corrections as traders and investors await the Federal Reserve’s announcements.
What key events led to the market corrections in Bitcoin and Ethereum?
The primary event leading to the market corrections in both Bitcoin and Ethereum is the anticipation of the FOMC’s upcoming interest rate decision. Additionally, traders seem to be engaging in profit-taking actions ahead of this significant monetary policy announcement.
What is the significance of the Relative Strength Index (RSI) in the article?
The Relative Strength Index (RSI) is highlighted as an important technical indicator that contributed to the price movements of Bitcoin and Ethereum. For Bitcoin, the RSI fell below the 60.00 mark, and for Ethereum, it failed to rise above a ceiling of 49.00. These movements are taken as signals of potential future price changes.
How are traders reacting to the upcoming FOMC decision?
Traders appear to be taking a cautious approach by locking in profits ahead of the FOMC announcement. This is leading to slight downturns in the market prices of both Bitcoin and Ethereum.
What are the key support and resistance levels mentioned for Bitcoin and Ethereum?
For Bitcoin, a key support level is indicated at 55.00 on the RSI. For Ethereum, a critical support point is mentioned at $1,620 in terms of its USD trading pair.
What is the article’s perspective on the overall market sentiment for Bitcoin and Ethereum?
The article suggests that despite the day’s declines, the overall market sentiment for both Bitcoin and Ethereum remains largely bullish. The downturns are primarily attributed to profit-taking actions rather than a shift in fundamental market conditions.
How can readers stay updated with weekly technical analysis reports?
Readers can register their email addresses to receive a summary of the week’s top cryptocurrency news as part of the Weekly Technical Analysis Report.
More about FOMC interest rate decision
- U.S. Federal Open Market Committee (FOMC)
- Understanding the Relative Strength Index (RSI)
- Bitcoin Price Charts and Analysis
- Ethereum Price Charts and Analysis
- Cryptocurrency Market Capitalization
- Federal Reserve Monetary Policy
- Technical Analysis Fundamentals
- Weekly Technical Analysis Report Subscription
- Cryptocurrency News