BTC and ETH Consolidating as Some Expect the Fed to Raise Prices by 1% – Bitcoin News

BTC and ETH Consolidating as Some Expect the Fed to Raise Prices by 1% – Bitcoin News


Bitcoin fell below $19,000 on Wednesday, as markets braced for a possible 100 basis point interest rate hike from the US central bank. Although the consensus for a rate hike remains at 0.75%, some believe that with inflation remaining at historically high levels, a rise of 1.00% may be in the offing. Ethereum remained lower after the news, trading marginally above $1,300.

Bitcoin

Bitcoin (BTC) fell below $19,000 earlier in the day, as traders began preparing for today’s Federal Open Market Committee (FOMC) meeting.

Market uncertainty remains rife with speculation increasing whether the Fed can raise interest rates by 100 basis points.

as a result of, BTCThe USD/USD fell to a low of $18,813.46 earlier today, a day after reaching a peak above the $19,600 level.

BTC/ USD – daily chart

Looking at the chart, this latest drop has pushed the 10-day moving average (red) on the brink of a bearish crossover with its 25-day (blue) counterpart.

If this happens, we could see Bitcoin not only drop below $19,000, but potentially below $18,000 for the first time since June.

As of this writing, the token is trading at $1,9153.66 as prices continued to consolidate ahead of the afternoon announcement.

Ethereum

Ethereum (ETH) was also consolidating on the day of the hump, with the coin trading slightly above the $1,300 level.

After rising to $1,378.68 on Tuesday, ETHUSD/USD moved to an intraday low of $1,319.20 earlier today, as sentiment in the cryptocurrency markets remained bearish.

Traders have been hesitant in recent days, choosing to liquidate positions rather than stick to long positions before the rate hike.

ETH/ USD – daily chart

The rise in uncertainty also came after the 14-day Relative Strength Index (RSI) crashed, with the index reaching a resistance point.

As of this writing, the index is tracking at 38.43, marginally below the ceiling at 39.00, which is currently the main hurdle preventing prices from going higher.

Although there is still a high level of fear in the market, will we see a breach of the aforementioned ceiling, ETH The bulls may re-enter the market and try to take the price above $1,400.

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Will the Fed decide to raise rates by 0.75% or 1.00% today? Put your thoughts in the comments below.

Eleman Dambel

Offering an eclectic view of market analysis, Elleman was previously a brokerage director and retail educator. He currently works as a commentator across various asset classes, including Crypto, Stocks, and FX.




photo credits: Shutterstock, Pixabay, Wikicommons

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