Bitcoin was trading slightly higher ahead of Wednesday’s US FOMC meeting where the Federal Reserve is expected to raise interest rates. As inflation continues to rise, many expect the Fed to raise rates by more than 75 basis points. Ethereum also rallied, briefly falling below $1,300 on Monday.
Bitcoin
Bitcoin (BTC) was slightly higher on Tuesday as markets began to prepare for tomorrow’s Federal Open Market Committee (FOMC) meeting.
BTC/USD hit an intraday high of $19,639.48 earlier in today’s session, as the price bounced back from losses for the week.
The move comes as the bulls rejected an attempt to move below yesterday’s floor of $18,645, instead using this as a reversal point.
Looking at the chart, today’s gains have seen the 14-day Relative Strength Index (RSI) move below yesterday’s low of 38.00 points. RSI is currently tracking at 39.69.
The next step for the bulls is to recapture the $20,000 level, but the current market dynamics make this easy.
As of writing, the token is trading at $19,117.06, as early gains are declining slightly ahead of the price decision.
Ethereum
Similar to bitcoin, ethereum (ETH) attempted to rally higher on Tuesday after hitting two-month lows in yesterday’s session.
ETH/USD rose to $1,388.27 earlier in the day, down from $1,287.72 to start the week.
Like BTC earlier, ethereum bulls entered the market following a move below a key support point, in this case the $1,315 floor.
Although the 14-day RSI is currently in bearish or oversold territory, many still believe that further declines are likely to come.
As of writing, the index is tracking at 36.90, but the support level of 34.60 could be a target for some traders.
Another reason some people expect a move below $1,000 ahead is the lower moving average.
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