• Bitcoin (BTC) consolidated recent gains on March 21, as markets awaited the upcoming Federal Open Market Committee (FOMC) meeting.
• Ethereum (ETH) remained below $1,800 for the second straight session, following a recent climb into overbought territory.
• Many expect that the Federal Reserve will maintain rate hikes, however at a slower pace of 25 basis points.
Bitcoin and Ethereum Technical Analysis
Awaiting FOMC Meeting
Many traders are awaiting the upcoming Federal Open Market Committee (FOMC) meeting to see how it will affect market volatility. The U.S. recently announced that it would explore measures to guarantee client deposits at embattled banks following a crisis, which adds to the uncertainty of what may come from the meeting.
Bitcoin Consolidates Gains
Bitcoin was trading slightly below $28,000 as traders consolidated recent gains ahead of the FOMC meeting tomorrow. BTC/USD hit an intraday low of $27,439.65 earlier today after reaching its nine-month high earlier this week of $28,352.76. The 14-day relative strength index (RSI) failed to move beyond a ceiling of its own and is currently tracking at 71.47 marginally below its resistance level of 72.00; however bitcoin has since risen back above $28,000 with price swings likely to persist throughout the day leading up to Wednesday’s decision from the Fed Reserve .
Ethereum Remains Below $1,800
Ethereum also saw declines as ETH/USD fell to an intraday low of $1,725.01 after trading at a peak of $1,788.13 yesterday despite seeing an upward crossover between its 10-day and 25-day moving averages earlier in the day . The RSI also fell back below support levels at 61 , and is currently tracking at 60 .74 . For bulls to recapture their goal of hitting $1 , 800 , they must first break through this ceiling on the RSI .
It appears that market volatility is likely going to increase around Wednesday’s FOMC meeting and traders have been consolidating their positions leading up to it due to uncertainty surrounding what may be announced by Federal Reserve officials regarding interest rates increases or other measures designed to stabilize financial markets in light of recent events such as bank crises . It appears that both bitcoin and ethereum have seen some declines but could potentially rise again if bulls can break through key resistance levels outlined above before Wednesday’s announcement from the Fed Reserve .