by Eliman Dambell
Bitcoin was trading marginally higher on Wednesday, as crypto markets returned to the green ahead of the Fed meeting. ETH also rebounded in today’s session, moving away from its long-term support level in the process.
BTC was trading higher on Wednesday, as bulls re-entered the market ahead of today’s Federal Reserve rate decision.
Following a floor of $37,585.62 during Tuesday’s session, BTC/USD rallied to an intraday peak of $39,095.11 earlier today.
The move came as bitcoin used its recent support point of $37,500 as a springboard, and bounced towards its highest point this week in the process.
This rebound came as a herd of bulls burst through the gates, and pushed past a major ceiling within the RSI indicator.
Looking at the chart, this resistance was at 42.20, and since the breakout, price strength is now tracking at its highest level since April 21.
Now tracking at 45.50, a further ceiling awaits at 48.70, which is likely where this current bullish momentum will be tested, with some likely to secure gains and exit their positions.
The price of ethereum also marginally rebounded on Fed day, as it too moved further away from its long-term support.
Wednesday has so far seen ETH/USD hit an intraday high of $2,876.42, which is around 0.9% higher than yesterday’s bottom at $2,762.12.
This low came as prices briefly fell below the support level of $2,780. However, history repeated itself, with bulls re-entering at that level, as seen countless times before.
Similar to BTC, price strength on the ETH chart is also tracking close to a ten-day peak, but an upcoming ceiling may also dent the chances of further progress.
As seen on the chart, this ceiling is the 47.70 level on the Relative Strength Index, however simply hitting this point should be enough to see the price hit $2,950.
In order to break past that resistance and go beyond $3,000, we will likely need an influx of more bulls to maintain the upward pressure.
Will a rate hike today help or hinder crypto trading? Leave your thoughts in the comments below.
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.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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