Bitcoin retreated from recent highs on Wednesday, ahead of the upcoming U.S. Federal Open Market Committee (FOMC) interest rate announcement. The Fed is expected to keep rates unchanged, despite inflation rising by more than expected in August. Ethereum also gave up gains in today’s session.
Bitcoin started the day trading marginally lower, as markets prepared for the highly anticipated Federal Reserve interest rate decision.
BTC/USD dropped to an intraday low of $26,918.32 on Wednesday, following a peak at $27,488.76 the day prior.
In addition to the rate decision, the FOMC will give an economic forecast, which could provide some forward guidance on future policy decisions.
One of the catalysts for the drop in price was the relative strength index (RSI), which fell below a ceiling at the 60.00 mark.
The index is now tracking around the 57.08 level, and is moving towards a support point at 55.00.
Overall, momentum remains largely bullish, with today’s decline largely due to profit taking ahead of the Fed announcement.
Following a high of $1,669.02 on Tuesday, ETH/USD dropped to a low of $1,621.36 earlier in the day.
As a result of the move, the world’s second largest cryptocurrency fell close to a support point of $1,620.
Price has since rebounded, with ethereum trading at $1,631 at the time of writing, owing to bulls choosing to reject a breakout.
An earlier failed breakout attempt seems to be the reason for the decline, with the RSI unable to rise above a ceiling of 49.00.
Price strength now sits at 45.72, with a floor of 40.00 a possible target for short sellers.
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How will today’s interest rate decision impact crypto markets? Leave your thoughts in the comments below.