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On Tuesday, as markets continued preparing for the Federal Reserve’s (FOMC) interest rate announcement tomorrow, Bitcoin plummeted below the $28,000 barrier. Despite the U.S. economy slowing down, the Fed is anticipated to raise rates by 0.25%. Ethereum continued to decline and was on the verge of breaking through $1,800.
Bitcoin
On Tuesday, as markets prepared for the imminent Federal Open Market Committee (FOMC) decision, Bitcoin (BTC) fell below the $28,000 barrier.
Earlier in today’s session, BTC/USD fell to an intraday low of $27,680.79, less than 24 hours after trading at a high of $28,626.28.
This movement almost caused Bitcoin to reach its recent price floor at $27,600, causing it to drop to a six-day low.
If you look at the chart, you can see that the most recent loss occurred after the relative strength index (RSI) fell below its own floor at 50.00.
The index is currently tracking at 46.17, and the next obvious support level is 43.00.
Since then, Bitcoin has climbed back up to $28,000, where it is now trading at $28,176.91.
Ethereum
In today’s session, Ethereum (ETH) prices also declined, reaching a crucial support level.
ETH/USD fell to a low of $1,809.19 earlier in the day after reaching a high of $1,851.19 to start the week.
The second-largest cryptocurrency in the world fell below its long-term price floor of $1,830 due to today’s decline.
Since then, ETH has risen above this floor as sentiment has remained constant despite the prior fall.
The RSI, which currently has a value of 44.30, is trading below its own support level of 45.00, but this still occurred.
Following the Fed’s decision, there may be additional movements on Wednesday, with a possible move above $1,900 still possible.
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