Bitcoin Dips Below $28K Ahead of FOMC Decision – Market Update


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Bitcoin fell below the $28,000 level on Tuesday, as markets continued to prepare for tomorrow’s Federal Reserve interest rate decision. The Fed is expected to increase rates by 0.25%, despite the U.S. economy slowing down. Ethereum also remained lower, moving close to a breakout below $1,800.

Bitcoin

Bitcoin (BTC) dropped below $28,000 on Tuesday, as markets prepared for the upcoming Federal Open Market Committee (FOMC) decision.

BTC/USD slipped to an intraday low of $27,680.79 earlier in today’s session, which came less than 24 hours after trading at a high of $28,626.28.

As a result of this move, bitcoin nearly collided with its recent price floor at $27,600, hitting a six-day low in the process.

Bitcoin, Ethereum Technical Analysis: BTC Moves Below $28,000 Ahead of FOMC Decision
BTC/USD – Daily Chart

Looking at the chart, the latest decline comes as the relative strength index (RSI) moved below a floor of its own at 50.00.

At the time of writing, the index is tracking at 46.17, with the next visible point of support at 43.00.

Bitcoin has since moved back above $28,000, and is currently trading at $28,176.91.

Ethereum

Ethereum (ETH) was also lower in today’s session, with prices also falling to a key level of support.

Following a high of $1,851.19 to start the week, ETH/USD plunged to a bottom at $1,809.19 earlier in the day.

Today’s drop saw the world’s second largest cryptocurrency move below its long-term price floor at $1,830.

Bitcoin, Ethereum Technical Analysis: BTC Moves Below $28,000 Ahead of FOMC Decision
ETH/USD – Daily Chart

ETH has since rebounded from this floor, as sentiment remained relatively stable, despite the earlier decline.

This happened despite the RSI trading under a support point of its own at 45.00, with a current reading of 44.30.

There could be more moves on Wednesday following the Fed decision, with a potential move above $1,900 still on the cards.

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Will the Fed raise interest rates tomorrow? Leave your thoughts in the comments below.

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Eliman Dambell

Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.




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