Bitcoin moved off its recent low of $20,000 on Thursday following a historic gain from the Federal Reserve. The Fed responded with a 0.75% rate hike as U.S. inflation rose to a 44-year high of 8.6% last month. ETHalso rose modestly today.
Bitcoin
BTCrose modestly on Thursday as the market reacted to the latest rate hike from the Federal Reserve.
The Fed opted to raise rates by 75 basis points (bps) at its latest policy meeting, andBTC/USD rose to $22,868.92 ostensibly as a result.
Thursday’s move comes as bitcoin is off yesterday’s low of $20,391.30 and traders are trying to create a new support point.
As of this writing, the $21,100 point appears to be a possible price bottom, however, the bears will likely try to moveBTCwill likely move further down.
In addition to price, the 14-day RSI also appears to have settled into a support area at 23.20, which may give bulls some optimism.
However, if relative strength is driven below this point, the $19,000 target the bears have in view could still be hit.
Ethereum
ETHnearly broke below $1000 on Wednesday, but is still up in today’s session following the FOMC.
After a hump day low of $1,060.97,ETH71} /USD made an intraday high of $1,246.14 earlier in today’s session.
Similar to Bitcoin, today’s action sawtry to find a new support point; ETHtried to find a new support point and traders appear to have settled around $1,100 for now.
Overall,ETHis still nearly 40% lower than the same point last week and bearish sentiment remains.
If this sentiment turns into momentum again, bears are likely to take Ethereum below $1,000, with some estimates putting the bottom at $800.
For that to happen, the Relative Strength Index would likely need to trade below 20, its current position.
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