Technical Analysis of Bitcoin and Ethereum: BTC Retreats from $20,000 After Historic Fed Rate Increase
Bitcoin has returned from a $ 20,000 drop after a historic rate hike by the Federal Reserve on Thursday. Last month, US inflation hit a 44-year high of 8.6%, and the Fed raised interest rates by 0.75%. ETH has risen slightly today. BTC moved slightly higher on Thursday as markets reacted to the recent rise in central bank rates. At the most recent policy meeting, the Fed decided to increase rates by 75 basis points, pushing BTC / USD to $ 22,868.92.
The move on Thursday sent Bitcoin to rebound from yesterday’s low of $ 20,391.30 as traders sought to establish a new support point. However, at the time of writing, the $ 21,100 mark could be a decent minimum price, and the bears will try to send Bitcoin even lower. In addition to the price, the 14-day RSI seems to be installed in the 23.20 support area, which could give the bulls some confidence. However, if the relative strength falls below this point, the $ 19,000 target the bears are targeting could still be reached. ETH fell below $ 1,000 on Wednesday, although it rallied during today’s post-FOMC session. ETH / USD hit an intraday high of $ 1,246.14 during today’s session, after an intraday low of $ 1,060.97.
Similar to Bitcoin, today’s move suggests that Ethereum is trying to find a new support point, and traders have apparently settled into the $ 1,100 zone at the moment. Overall, ETH is 40% lower than last week. If sentiment turns quickly again, the bears will take Ethereum under $ 1,000, with some expecting under $ 800. For this to happen, the RSI should trade below 20, where it is now.