Bitcoin fell below $19,000 on Wednesday as the market braced for a possible 100 basis point rate hike by the US central bank. The consensus for a rate hike remains at 0.75%, but some believe a 1.00% hike is possible as inflation remains at historically high levels. Ethereum stopped lower on the news and traded just above $1300.
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 remained high as speculation grew as to whether or not the Fed would raise rates by 100 basis points.
As a result,BTC’s/USD fell to a low of $18,813.46 earlier today, a day after peaking above $19,600.
The chart shows that the 10-day moving average (red) is on the brink of crossing downward with the 25-day moving average (blue) on this latest decline You can see.
If this happens, bitcoin could not only fall below $19,000, but also below $18,000 for the first time since June.
As of this writing, the token is trading at $19,153.66 as prices continue to consolidate before this afternoon’s announcement.
Ethereum
Ethereum (ETH) also consolidated on Hump Day, with the token trading just above the $1300 level.
After hitting a high of $1,378.68 on Tuesday,ETHmoved above $1,300.54} ETHmoved to an intraday low of $1,319.20 earlier today as /USD remained bearish as sentiment in the crypto market The price has now moved to an intraday low of $1,319.20.
Traders have been tentative in recent days, opting to liquidate positions rather than hold longs ahead of a rate hike.
Also, uncertainty rose as the 14-day Relative Strength Index (RSI) hit a resistance point.
At the time of writing, the index is hovering at 38.43, just below the 39.00 ceiling, the main obstacle currently preventing prices from rising.
There remains a high level of fear in the market, but a breakout of the aforementioned ceiling could bring inETHbulls; ETHbulls could re-enter the market and try to take the price above $1,400; ETH
bulls could try to take the price above $1,400; ETH
bulls could try to take the price above $1,400; ETH bulls could try to take the price above $3,000.
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