Bitcoin moved below $28,000 on Thursday, as markets reacted to the latest Federal Reserve interest rate hike. The Fed opted to increase rates by 25 basis points (bps) as many had anticipated, and signal one more hike this year. Ethereum was also lower on the news, falling below $1,800.
Bitcoin (BTC) dropped below $28,000 on Thursday, as markets continued to react to the latest Federal Reserve rate hike.
The Fed moved to increase rates by 25 basis points, whilst signaling that no cuts will be made this year.
BTC/USD fell to an intraday low of $26,760.00 on the news, which comes a day after trading at a peak of $28,803.34.
From the chart, the decline appears to have come as a result of the relative strength index (RSI) failing to break out of a ceiling at 72.00.
As of writing, the index is tracking at 66.54, with the next visible point of support at the 62.00 mark.
Overall, prices are still relatively overbought, which could lead to further bears reentering the market in the coming days.
Following a high of $1,821.46 on Wednesday, ETH/USD declined to a low of $1,717.77 earlier in today’s session.
As a result of the slippage, ethereum neared a recent point of support at the $1,715 mark, however bulls have so far rejected a breakout.
Looking at the chart, the 10-day (red) moving average remained in an upward trend, which could be a sign of future bullish momentum.
Price strength is currently tracking at 58.02, which is marginally above a floor at 57.00, resulting in ETH jumping from earlier lows.
At the time of writing, ethereum is tracking at $1,756.34.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect ethereum to move back above $1,800 this week? Leave your thoughts in the comments below.