Bitcoin, Ethereum Technical Analysis: BTC, ETH Remain Higher Ahead of Fed Rate Decision
Bitcoin continues to trade close to $18,000 on Wednesday, as markets remain bullish, following the latest U.S. inflation report. Following the data, which saw consumer prices rise to 7.1%, many expect the Federal Reserve to increase interest rates by 50 basis points. Ethereum was also higher today, and stayed close to a five-week high.
Bitcoin (BTC) was trading close to the $18,000 level on Wednesday, as markets remained higher following the latest U.S. inflation report.
Following a low of $17,412.19 on Tuesday, BTC/USD surged to a peak of $17,930.09 earlier in today’s session.
As a result of this move, BTC continues to trade close to its highest point since November 9, which is the last time price was above $18,000.
Looking at the chart, this recent rise in momentum came as the 14-day relative strength index (RSI) raced to its highest point since early November.
As of writing, the index is tracking at the 60.00 mark, which is marginally below a key ceiling at the 60.75 mark.
Should bitcoin climb beyond this point, we could see the coin once again move above the $18,000 point.
Ethereum (ETH) was also trading near a multi-week high in today’s session, as traders geared up for the U.S. Federal Reserve policy meeting.
Many expect the Fed to increase interest rates by 50 basis points, following the better-than-expected inflation report.
ETH/USD hit a high of $1,341.44 on Wednesday, which comes less than 24 hours after trading at a bottom of $1,289.23.
As can be seen from the chart, ethereum remains close to a five-week high, with prices in the green for a third consecutive session.
Like with bitcoin earlier, the RSI is now hovering close to a key resistance level of 59.00, with a current reading of 58.06.
Market pressure could intensify should bulls force a breakout of this hurdle, potentially leading ETH towards $1,400.
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Do you expect the Federal Reserve to hike the benchmark rate by more than 0.5%? Leave your thoughts in the comments below.