Bitcoin was consolidating below a key resistance level on Tuesday, as market volatility rose ahead of the upcoming US Fed decision. Tomorrow’s Federal Reserve meeting will likely see interest rates increased, as the bank battles inflation. Ethereum moved below $1,600 in today’s session.
bitcoin (BTC) was trading below a key resistance level on Tuesday, ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting.
Following a failed breakout of its $20,800 ceiling on Monday, BTC/USD slipped to a low of $20,287.46 earlier today.
Market uncertainty has spiked in anticipation of the FOMC meeting, with many expecting the Fed to increase rates by 0.75%.
As can be seen from the chart, price volatility also comes following a failed surge in price strength, with the relative strength index (RSI) recently failing to break a ceiling of its own.
The threat of a rate hike has boosted US dollar strength, which appears to be one of the factors behind today’s consolidation.
BTC will likely continue to hover below its $20,800 ceiling until the tension of tomorrow has passed.
In addition to bitcoin, ethereum (ETH) also moved lower on Tuesday, falling below $1,600 in the process.
Following a peak of $1,630.45 to start the week, the world’s second largest cryptocurrency moved to a low of $1,555.92 today.
The drop saw ETH/USD plunge below its recent ceiling of $1,585, with price strength also declining.
As of writing, the 14-day RSI is currently tracking at 66.71, which is marginally above a floor of 65.00.
Due to the index continuing to trend above this floor, bullish sentiment seems to have stayed in ETHwith prices now moving away from earlier lows.
ETH is currently trading at $1,590.79, with traders attempting to send the token back above $1,600.
Register your email here to get weekly price analysis updates sent to your inbox:
Could we see markets continue to consolidate even after the Fed decision? Leave your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Nick Beer / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.