Simon Ng Table Of Contents
Bitcoin
Bitcoin registered a decline for the second day in a row, following the United States Federal Reserve’s decision to maintain its interest rate at 5.5%.
After peaking at $27,289.77 on the previous day, the BTC/USD trading pair witnessed a reduction to an intraday low of $26,703.77 earlier in the current session.
The Federal Reserve’s choice to maintain rates led to a surge in the value of the dollar, which touched its highest point since April against the British pound.
BTC/USD – Daily Technical Chart
The decline in Bitcoin’s price caused the 14-day Relative Strength Index (RSI) to break below its support level at 55.00.
The RSI is now recorded at 52.45, and it seems to be trending toward a new, lower support level around 45.00.
If the index reaches this lower threshold, it is likely that Bitcoin’s trading price could gravitate around the $26,000 mark.
Ethereum
Ethereum (ETH) approached a critical price decline in today’s trading, touching its lowest point in a week.
The ETH/USD pair dropped to an intraday low of $1,606.18, subsequent to Wednesday’s high of $1,639.35.
The reduction in price today took Ethereum to its most depressed level since September 13, which was the last occurrence of the cryptocurrency trading below the $1,600 level.
ETH/USD – Daily Technical Chart
The Relative Strength Index (RSI) failed to surpass a resistance level at 49.00 and has since veered closer to the oversold zone, now registering at 41.52.
Bearish traders appear to be aiming for a support level at 35.00, which could guide Ethereum toward a new floor at $1,575.
Conversely, bullish investors seem to be holding their positions, as indicated by the 10-day (colored red) and 25-day (colored blue) moving averages, which have yet to intersect.
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Do you think Ethereum investors are poised to capitalize on this downturn? Share your insights in the comments section below.
Frequently Asked Questions (FAQs) about Technical Analysis of Bitcoin and Ethereum
What is the main subject of the article?
The article primarily focuses on the technical analysis of Bitcoin and Ethereum following the U.S. Federal Reserve’s decision to keep interest rates unchanged at 5.5%. It examines how the strength of the U.S. dollar has affected these cryptocurrencies and provides insights based on their Relative Strength Index (RSI) and price trends.
What was the Federal Reserve’s decision regarding interest rates?
The U.S. Federal Reserve decided to maintain its interest rate at 5.5%, while also hinting at a possible additional rate hike in the current cycle.
How has the Federal Reserve’s decision impacted the U.S. Dollar?
The decision led to a strengthening of the U.S. dollar across various currency pairs, reaching its highest level since April against the British pound.
What are the key technical indicators mentioned for Bitcoin?
The key technical indicators for Bitcoin include the 14-day Relative Strength Index (RSI), which fell below a support point at the 55.00 level. The RSI currently stands at 52.45 and appears to be heading towards a lower support level near 45.00.
What is the current state of Ethereum according to the technical analysis?
Ethereum is nearing a drop below a crucial price level and has reached a one-week low. The RSI has moved closer to oversold territory, tracking at 41.52. The bearish traders seem to be aiming for a support level at 35.00.
What is the significance of the 10-day and 25-day moving averages for Ethereum?
The 10-day (red) and 25-day (blue) moving averages have not yet crossed, suggesting that bullish investors may still be waiting to make their move. These moving averages can be indicators of a potential trend reversal or continuation.
How can I receive weekly updates on cryptocurrency technical analysis?
The article offers a subscription to weekly technical analysis reports. By registering your email, you can receive summaries of the most crucial cryptocurrency news and trends directly to your inbox.
Are there any cues for potential Ethereum investors?
The article suggests that bullish Ethereum investors might be waiting for a potential dip to make their entry, as indicated by the 10-day and 25-day moving averages which have yet to intersect.
More about Technical Analysis of Bitcoin and Ethereum
- Federal Reserve Interest Rate Decision
- Bitcoin Price History
- Ethereum Price History
- Understanding the Relative Strength Index (RSI)
- Technical Analysis Basics
- U.S. Dollar Strength and Its Impact on Cryptocurrencies
- Introduction to Moving Averages in Cryptocurrency Trading
