Bitcoin consolidated marginally above the $29,000 level on Wednesday, ahead of today’s Federal Open Market Committee (FOMC) meeting. It is widely expected that the Fed will increase rates by 25 basis points, after holding off on hiking last month. Ethereum also remained mostly unchanged.
BTC Consolidates, as Markets Prepare for 25-Basis-Point Fed Rate Hike
Bitcoin started today’s session largely unchanged, as traders anticipated the latest Federal Reserve rate decision.
Following a low of $29,097.47 on Tuesday, BTC/USD marginally rose to a high of $29,382.11 earlier today.
This move saw the cryptocurrency consolidate around a support point at the $29,100 mark, which was last fully broken on June 21.
Another floor was hit in today’s session, as the relative strength index (RSI) collided with the 42.00 zone.
Price strength has since rebounded, and at the time of writing this is tracking at a reading of 42.09.
Should the index remain above this level after today’s rate decision, there is a good chance that BTC could move back towards $30,000.
Additionally, ethereum (ETH) also consolidated on Wednesday, trading close to a key price floor at $1,850.
ETH/USD peaked at $1,867.32 earlier in today’s session, before slipping to a current day’s low of $1,849.44.
The decline came as the 10-day (red) moving average extended its downward crossover with its 25-day (blue) counterpart.
A key area to pay attention to is the floor at 45.00 on the RSI. The index is currently hovering around this mark, however a breakout could result in further declines.
In the event this occurs, the next visible support level to pay attention to will be the 40.00 zone.