In anticipation of the imminent Federal Open Market Committee (FOMC) interest rate announcement, bitcoin declined from recent highs on Wednesday. Despite the fact that inflation increased more than anticipated in August, the Fed is poised to hold rates unchanged. Ethereum lost today's session gains as well.
Bitcoin
As markets were ready for the highly anticipated Federal Reserve interest rate decision, Bitcoin started the day off slightly lower.
After reaching a high of $27,488.76 on Tuesday, BTC/USD fell to an intraday low of $26,918.32 on Wednesday.
The FOMC will also announce its decision on interest rates and present an economic outlook, which could offer some forward direction for upcoming policy choices.
The relative strength index (RSI), which went below a ceiling at the 60.00 level, was one of the factors that caused the price to decline.
The index is currently trading near the 57.08 level and is heading in the direction of a support level at 55.00.
The overall trend is still bullish, and today's dip is primarily the result of profit-taking before the Fed announcement.
Ethereum
Ethereum (ETH) also experienced a decline during today's session, which is likewise explained by investors choosing to lock in gains.
The price of ETH/USD fell to a low of $1,621.36 earlier in the day after reaching a high of $1,669.02 on Tuesday.
The move caused the second-largest cryptocurrency in the world to drop almost to a support level of $1,620.
Due to bulls' decision to deny a breakout, price has now recovered; at the time of writing, ethereum is trading at $1,631.
The decrease appears to be the result of an earlier failed breakout attempt, as the RSI was unable to move above a ceiling of 49.00.
Price strength is currently at 45.72, with a potential short-term objective of 40.00.
How will the decision on interest rates today affect the crypto markets? Post your opinions in the section below.