Bitcoin, Ethereum Technical Analysis: BTC Prices Shaken as Fed Keeps Rates Unchanged
On Thursday, cryptocurrency markets were choppy as traders reacted to the Federal Reserve’s decision to keep interest rates unchanged. Both bitcoin and ethereum saw price volatility, with markets now anticipating an increase in March.
BTC/USD plummeted to a low of $35,690.05 earlier today after making a run towards the $40,000 resistance on Wednesday, trading beyond $38,000 in the process.
Thursday’s move comes as market uncertainty in the cryptocurrency space has grown, culminating in today’s candlestick creating a Doji, which signifies prices are neither bullish nor negative.
As a result of the uncertainty, market strength is presently hovering around the 30 RSI level, indicating that we are still in oversold territory.
This RSI level appears to represent a point of resistance, which could be the reason for today’s price inaction, with traders waiting to see if a breakout is possible.
The current ascending triangle, which is keeping prospects of a $40,000 resistance target alive, shows that short-term momentum is still pointing upward.
ETH was over 5% lower than yesterday’s high, but prices appeared to be stabilizing rather than selling down.
After reaching a high of $2,705.78 on Wednesday, when ETH/USD momentarily broke through the 0.236 Fibonacci barrier level, prices plummeted to a low of $2,366.13 today.
Markets fell below what appeared to be a short-term support level of $2.390, which is where ETH has been largely trading this week.
Similarities may be drawn between its current RSI trend and that of BTC, with both tracking at or below 30.