Bitcoin, Ethereum Technical Analysis: BTC Consolidates as Markets Prepare for 0.75% Rate Hike

Bitcoin, Ethereum Technical Analysis: BTC Consolidates as Markets Prepare for 0.75% Rate Hike

Bitcoin was consolidating below a key resistance level on Tuesday, as market volatility rose ahead of the upcoming U.S. 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

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%. BTC/USD – Daily Chart

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 U.S. 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. Ethereum

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. ETH/USD – Daily Chart

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 ETH, with 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: Tags in this story Analysis, Bitcoin, BTC, Cryptocurrency, ETH, Ethereum

Could we see markets continue to consolidate even after the Fed decision? Leave your thoughts in the comments below. Eliman Dambell

Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX. Biggest Movers: DOGE Over 130% Higher in the Last 7 Days MARKET UPDATES | 8 hours ago Biggest Movers: BNB Rallies to 5-Month High on Monday MARKET UPDATES | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons, Nick Beer / Shutterstock.com Previous articleBig Four Company EY Takes Wavespace Utility to the Metaverse Next articleGamestop NFT Marketplace Is Now Live on Immutable X, Market Features Web3 Games 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales

Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto