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.
After making a run towards the $40,000 resistance on Wednesday, trading above $38,000 in the process, BTC/USD fell to a low of $35,690.05 earlier in today’s session .
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 now hovers at the 30 RSI level, which means we are still within 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, short-term momentum continues to point upward, as can be seen with the current ascending triangle, which is keeping hopes of a $40,000 resistance target alive.
BTC/USD – Daily Chart
Many will now wait to see if this momentum continues on Friday, into the upcoming weekend.
ETH was trading nearly 5% lower from yesterday’s high, however prices seemed to be consolidating, opposed to selling off.
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 drop in price saw markets hit 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.
ETH/USD – Daily chart
Is this the key indicator traders are currently looking at before taking on new positions? Leave your thoughts in the comments below.
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
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