Bitcoin, Ethereum Technical Analysis: BTC Fails to Breakout of $40,000 Resistance Level
On the eve of tomorrow’s FOMC meeting, bitcoin once again failed to climb past its long-term resistance level of $40,000, as markets consolidated. Although prices moved away from recent support, upside momentum slowed as BTC neared its ceiling. As of writing, ETH was trading at its level of support. Bitcoin
Bitcoin came close to breaking out of its $40,000 resistance point on Tuesday, as markets prepared for tomorrow’s FOMC meeting.
Following a low of $37,773.21 on Monday, BTC/USD has so far risen to an intraday high of $39,742.50 today.
Today’s high saw BTC on the cusp of its ceiling, however with the current volatility in the market, strength turned to weakness as prices dropped. BTC/USD – Daily Chart
This drop resulted in BTC/USD falling to a low of $38,310.21 earlier today, however it has since rebounded and is once again trading above $39,000.
Looking at the chart, the RSI indicator is currently tracking at 47.9, which is marginally below resistance of 49.
Markets are likely waiting for the results of tomorrow’s meeting, and press conference, prior to us seeing the next upside or downside trend.
Ethereum
If there were a cryptocurrency which encapsulates the current uncertainty in the market, it would be ETH, which once again consolidated.
As of writing, ETH/USD is trading $10 above its recent support level of $2,550, following an earlier low of $2,515.77.
The price of ethereum has largely consolidated in the last few weeks, trading between a floor of $2,550 and ceiling of $2,840. ETH/USD – Daily Chart
Despite the odd breakout, this sideways action has led to the 14-day RSI also tracking in neutral territory, with neither bulls nor bears taking charge of price strength.
Like BTC, this could change tomorrow, as the FOMC meeting could give crypto markets a sense of direction, once this current monetary cloud is lifted. Tags in this story Bitcoin, Ethereum, FOMC, Technical Analysis
Will a rate hike be beneficial to bulls or bears of cryptocurrencies? Leave your thoughts in the comments below. Eliman Dambell
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX. Biggest Movers: IOTX Climbs 13%, as GRT Leads Gainers on Tuesday MARKET UPDATES | 5 hours ago Biggest Movers: RUNE Rises by Over 15%, as FTM and AVAX Trend Lower MARKET UPDATES | 1 day ago
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