Bitcoin was consolidating on Wednesday, as the U.S. dollar continued to strengthen versus several G7 currencies. A strong dollar means demand for cryptocurrencies typically plummets, with the global market cap trading in the red as of writing. Ethereum was also lower today, falling as it remained below $1,300.
Bitcoin (BTC) continued to consolidate in today’s session, as prices hovered around the $17,000 mark on hump-day.
Following a low of $16,939.92 on Tuesday, BTC/USD raced to an intraday peak of $17,109.38 earlier in today’s session.
The move saw bitcoin continue to trade under its recent resistance level of $17,180, which has mostly been in place for the last month.
Looking at the chart, the consolidation comes as the relative strength index (RSI) also remained below its own ceiling of 50.00.
As of writing, the index is currently tracking at the 47.80 level, and seems to be heading to a floor at the 45.80 mark.
Should we see this decline occur, BTC will likely be trading at a support point of $16,800 in the upcoming days.
In addition to bitcoin, ethereum (ETH) was also in the red during Wednesday’s session, following a false breakout of a key resistance point.
ETH/USD remained below its long-term ceiling of $1,300 today, which comes as volatility in crypto markets heightened.
The world’s second largest cryptocurrency slipped to a bottom of $1,247.63, less than 24 hours after hitting a high of $1,272.69.
As can be seen from the chart, this took place despite the 10-day (red) moving average still somewhat trending higher.
Momentum seems to be slowly shifting however, with the RSI currently tracking at 49.56, which is below a ceiling of 51.00.
Turbulence in the market may continue up until next week’s Federal Reserve meeting, where it is expected that the bank will pivot its current policy.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect ethereum to drop to a floor of $1,175 ahead of the Fed meeting? Leave your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.