Cryptocurrency markets were volatile on Thursday as traders appeared to react to the Federal Reserve’s decision to keep interest rates unchanged. Bitcoin and ethereum both saw price uncertainty, as markets now expect a March hike.
Bitcoin
After making a run towards the $40,000 resistance on Wednesday, trading above $38,000 in the process, BTC/USD fell to lows of $35,690.05 earlier in the session. today.
Thursday’s move comes as market uncertainty within crypto increased, resulting in today’s candlestick forming a doji, which typically means prices are neither bullish nor bearish.
Following this uncertainty, market strength is now hovering at the 30 RSI level, meaning we are still in oversold territory.
This RSI level appears to be a point of resistance, which may be the cause of today’s inaction in prices, resulting in traders waiting to see if a breakout could be on the cards.
Overall, the short-term momentum continues to point upwards, as can be seen with the current ascending triangle, which keeps hopes alive for a resistance target of $40,000.
Many will now wait to see if this momentum continues on Friday, into the upcoming weekend.
Ethereum
ETH was trading down nearly 5% from yesterday’s high, but prices appeared to be consolidating, rather than selling.
Following a high of $2,705.78 on Wednesday, which saw ETH/USD briefly break into the 0.236 Fibonacci resistance level, prices today fell to a low of $2,366.13.
This price drop saw the markets reach what appeared to be a short-term support point of $2.390, which is an area where ETH has mostly traded this week.
Looking at its current RSI trend, similarities can also be drawn with BTC, with both tracking at or below 30.
