Bitcoin fell below $28,000 on Tuesday as markets continued to prepare for tomorrow’s Federal Reserve rate decision. The Fed is expected to hike rates by 0.25% even as the US economy slows. Ethereum also stayed lower, nearing a breakout below $1,800.
Bitcoin
Bitcoin (BTC) fell below $28,000 on Tuesday as markets braced for the upcoming Federal Open Market Committee (FOMC) decision.
BTC/USD slipped to an intraday low of $27,680.79 earlier in today’s session, which came less than 24 hours after trading at a high of $28,626.28.
As a result of this move, Bitcoin nearly collided with its recent price floor of $27,600, hitting a six-day low in the process.
BTC/USD daily chart
Looking at the chart, the recent decline comes as the Relative Strength Index (RSI) fell below its own floor at 50.00.
At the time of writing, the index is hovering at 46.17, with the next visible support point at 43.00.
Bitcoin has since surged back above $28,000 and is currently trading at $28,176.91.
ether
Ethereum (ETH) was also lower in today’s session, with prices also falling to a key support level.
After hitting a high of $1,851.19 earlier in the week, ETH/USD plunged to a low of $1,809.19 earlier in the day.
Today’s drop saw the world’s second-largest cryptocurrency move below its long-term price floor of $1,830.
ETH/USD daily chart
ETH has since recovered from this bottom as sentiment has remained relatively stable despite the earlier decline.
This was despite the RSI trading below its own support point at 45.00 with the current level at 44.30.
There could be more moves Wednesday after the Fed decision with a potential move above $1,900 still possible.
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Will the Fed hike rates tomorrow? Leave your thoughts in the comments below.
Elijah Dambell
Eliman was previously a director of a London based brokerage firm while also teaching online trading. He currently comments on various asset classes including crypto, stocks and forex while also being the founder of a startup.
Photo credits: Shutterstock, Pixabay, Wiki Commons
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