Bitcoin consolidated its recent gains on March 21 as the market awaits the upcoming Federal Open Market Committee (FOMC) meeting. Many expect the Federal Reserve to maintain interest rate hikes, but at a slower pace of 25 basis points. This follows the U.S. announcement that it would consider measures to guarantee customer deposits at troubled banks in the wake of the recent crisis.
Bitcoin (BTC) traded below $28,000 again as traders sorted out recent gains ahead of the upcoming FOMC meeting.
Following a weekly high of $28,352.76. BTC/USD fell to an intraday low of $27,439.65 earlier today.
This move is likely to lead to increased market volatility as bitcoin moves away from its recent 9-month highs ahead of tomorrow’s interest rate decision.
One indication of this concern is the failure of the 14-day Relative Strength Index (RSI) to exceed its ceiling.
As of this writing, the index is hovering at 71.47, just below the resistance level of 72.00.
However, BTChas since risen above $28,000 and price volatility is expected to continue throughout the day.
Meanwhile, Ethereum (ETH) has remained below $1,800 for two consecutive sessions following its recent climb into overbought territory.
ETH/USD fell to an intraday low of $1,725.01 on Tuesday after trading at a peak of $1,788.13.
Momentum appears to be shifting despite the recent upward crossover between the 10-day (red) and 25-day (blue) moving averages.
From the chart, it appears to coincide with the RSI falling below the 61.00
support point, but what do you think?
At the time of this writing, the index is hovering at 60.74 and Ethereum is up slightly, with the asset currently trading at $1,762.33.
For the bulls to recapture the $1,800 mark, this upper limit on the RSI must first be broken.
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