Bitcoin Falls as Fed Decision Boosts Dollar Strength
Bitcoin has experienced a second consecutive day of decline following the U.S. Federal Reserve’s decision on interest rates. After reaching a high of $27,289.77 on Wednesday, the BTC/USD pair dropped to a low of $26,703.77 in today’s trading session. The Fed’s decision to pause has resulted in a stronger dollar, with the USD reaching its highest level against the British pound since April.
This drop in Bitcoin’s price has caused the 14-day relative strength index (RSI) to fall below a support point at the 55.00 level. Currently, the RSI stands at 52.45 and seems to be heading towards a lower floor around the 45.00 region. If the index reaches this floor, there is a high possibility that Bitcoin could hover around $26,000.
Ethereum Approaches Key Price Level
Ethereum (ETH) has come close to falling below an important price level in today’s trading session, hitting a one-week low in the process. The ETH/USD pair dropped to an intraday low of $1,606.18 earlier today after peaking at $1,639.35 on Wednesday. This decline has pushed Ethereum to its weakest point since September 13 when the price was last below $1,600.
The RSI for Ethereum has moved closer to oversold territory after failing to break out of a resistance level at 49.00. It currently stands at 41.52. Bears are targeting a support level at 35.00, which could potentially lead ETH to reach the $1,575 floor. Meanwhile, bulls are waiting for confirmation as the 10-day and 25-day moving averages have yet to cross.
Hot Take: Bitcoin and Ethereum Face Downward Pressure
The recent interest rate decision by the U.S. Federal Reserve has had a negative impact on both Bitcoin and Ethereum. Bitcoin’s price has fallen for two consecutive days, while Ethereum is approaching a key price level. The strengthening of the dollar has played a significant role in these declines.
Bitcoin’s RSI has fallen below a support point, indicating further downward pressure on its price. Ethereum’s RSI is nearing oversold territory, with bears eyeing a support level that could push the price lower.
Investors should closely monitor these developments as they could signal potential buying opportunities or further downward momentum for both cryptocurrencies.
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