Bitcoin, Ethereum Technical Analysis: BTC Consolidates Recent Gains Ahead of FOMC Decision
Bitcoin
retreated from recent highs on Wednesday, ahead of the upcoming
U.S. Federal Open Market Committee (FOMC) interest rate announcement. The Fed is expected to
keep rates unchanged, despite inflation rising by more than expected
in August. Ethereum also gave up gains in today’s session.
Bitcoin chart by TradingView
One of the catalysts for the drop in price was the relative strength index (RSI), which fell below a ceiling
at the 60.00 mark.
The index is now tracking
around the 57.08 level, and is moving towards a support
point at 55.00. Overall, momentum remains largely bullish, with today’s decline largely due to profit taking ahead of the Fed announcement.
Ethereum (ETH) also slipped lower during today’s session, which can also be attributed to traders opting to secure gains.
Following a high
of $1,669.02 on Tuesday, ETH/USD dropped to a low
of $1,621.36 earlier in the day. As a result of the move, the world’s second largest cryptocurrency fell close to a support
point of $1,620.
Ethereum chart by TradingView
Price has since rebounded,
with ethereum trading at $1,631 at the time of writing, owing to bulls choosing to reject a breakout. An earlier failed breakout attempt seems to be the reason for the decline, with the RSI unable to rise
above a ceiling of 49.00.
Price strength now sits at
45.72, with a floor of 40.00 a possible target for short sellers.
