Bitcoin traded modestly higher ahead of Wednesday’s US FOMC meeting where the Federal Reserve is expected to raise interest rates. Many expect the Fed to raise rates above 75 basis points as inflation remains high. Ethereum also rose after briefly falling below $1,300 on Monday.
Bitcoin
Bitcoin (BTC) rose modestly on Tuesday as the market began preparing for tomorrow’s Federal Open Market Committee (FOMC) meeting.
BTC/USD hit an intraday high of $19,639.48 early in today’s session as prices rebounded from their losses earlier in the week.
The move came as bulls rejected yesterday’s attempt to break below the $18,645 bottom and instead used it as a point of re-entry.
The chart shows that today’s rise has moved the 14-day relative strength index (RSI) away from below 38.00 points, yesterday’s bottom. We can see that. Currently, the RSI is hovering at 39.69.
The next step for the bulls is to retake the $20,000 level, but with the current level of market volatility, this will not be easy.
At the time of this writing, the token is trading at $19,117.06, a slight reduction from its previous gains prior to the rate decision.
Ethereum
Like Bitcoin, Ethereum (ETH) also attempted a rally on Tuesday after moving to a two-month low in yesterday’s session.
/USD hit a bottom of $1287.72 earlier in the week and rose to a peak of $1388.27 later in the day.
57} as well as BTC, Ethereum bulls re-entered the market following a move below a key support point, in this case the $1,315 floor.
The 14-day RSI is currently in bearish or oversold territory, yet many believe further declines may be coming.
At the time of this writing, it is at 36.90, but the support level at 34.60 could be a target for some traders.
A downward cross of the moving averages is another reason to expect a possible break below $1,000.
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