During Thursday’s session, bitcoin approached the $40,000 mark as traders continued to react to yesterday’s Fed rate hike. At its May meeting, the FOMC decided to raise interest rates by 0.5%, the largest increase in twenty years.
Bitcoin
Bitcoin rose for a second straight session on Thursday as bulls were encouraged by the Fed’s decision to raise interest rates.
After yesterday’s sharp rise, BTC/USD climbed even higher in today’s session, approaching the $40,000 level.
Earlier today, BTC hit an intraday high of $39,902.95, the highest point that prices have reached since last Thursday.
Today’s rally was halted by a key $39,800 resistance point, which has historically been the main obstacle preventing prices from entering $40,000.
Looking at the chart, this resistance coincided with another ceiling in the RSI indicator as price failed to break 48.70.
As we determined yesterday, this resistance level will be in contention for both bulls and bears, and it looks like the bears have won this battle so far.
Ethereum
ETH also rose in today’s session as the uncertainty surrounding the Federal Open Market Committee (FOMC) meeting finally passed.
As this cloud dissipated, the bulls seemed uncertain to return to the cryptocurrency markets, with ETH hitting a one-week high as a result.
This high was the $2,956.69 point that ETH/USD reached earlier today, and followed the $2,829.99 low yesterday.
On Thursday, ethereum broke the long-term resistance level of $2,950, rising more than 2% from yesterday’s low.
Despite this upward momentum, some bulls retreated as we approached the resistance level, and earlier gains weakened, likely as a result of closing positions.
Momentum, however, continues to be bullish as the 14-day RSI tracks at 48.50, above its own ceiling.
Image Credits: Shutterstock, Pixabay, Wiki Commons