BTC falls from 5-week high as traders continue to digest Fed decision – market updates

Bitcoin fell from a five-week high on Thursday as markets continued to react to the Federal Reserve’s latest interest rate decision. The US Federal Reserve raised interest rates by 50 basis points, as expected, while laying the groundwork for a slower pace of interest rate hikes in the coming months. Ethereum also retreated from recent highs, falling below $1,300 earlier today.

Bitcoin

Bitcoin (BTC) traded below $18,000 again as bears reentered the market after the last Fed meeting.

After rallying to a five-week high of $18,318.53 on Wednesday, BTC/USD slipped to an intraday low of $17,642.51 today.

The decline appears to have come as traders looked to lock in profits after three consecutive days of gains.

BTC/USD daily chart

Looking at the chart, this reversal coincided with the 14-day Relative Strength Index (RSI) failing to break a ceiling of 60.00

As of this writing, the index is tracking the 57.17 level with the next visible support point at 54.00.

If price strength finds its way to this floor, BTC is likely to trade near $17,200.

ether

Alongside Bitcoin, Ethereum (ETH) also moved lower on Thursday after the US Federal Reserve decided to hike interest rates by 0.5%.

Following the decision, Fed Chair Jerome Powell issued some market forecasts, saying they were “approaching the levels we think [is] sufficiently restrictive.”

ETH/USD fell to a low of $1,280.52 earlier in today’s session, less than 24 hours after hitting a high of $1,346.17.

ETH/USD daily chart

As can be seen from the chart, the drop comes as ETH failed to weather a breakout from its long-term cap of $1,300.

Overall, prices are down nearly 4% from yesterday’s high, with the RSI currently at 50.92, which is marginally above a 50.00 floor.

The bulls will take a positive view of this and hope today’s sell-off does not continue for the rest of the week.

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Do you think Ethereum will fall below $1,200 this week? Leave your thoughts in the comments below.

Elijah Dambell

Eliman brings an eclectic perspective to market analysis, having previously been a broker director and retail educator. He currently acts as a commentator for various asset classes including crypto, stocks and forex.

Photo credits: Shutterstock, Pixabay, Wiki Commons

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