Bitcoin (BTC) experienced a rebound on Wednesday, with all eyes on the Federal Reserve rate decision. After reaching a low of $27,935.73 on Tuesday, BTC/USD surged to an intraday high of $28,881.30. This came after bitcoin rejected a breakout below its long-term floor at $27,600 earlier in the week. Momentum has shifted slightly higher, with the 10-day moving average approaching its 25-day counterpart. An upwards crossover could signal that bulls need to intensify pressure and bring BTC back above $30,000. However, the relative strength index (RSI) must first surge past a ceiling at the 52.00 mark.
Ethereum Also Bounces Back
Ethereum (ETH) also experienced a rebound on Wednesday, with bulls entering the market. ETH/USD rose to a peak of 1,879.76 after almost falling below $1,800 the day prior. The move saw ethereum bulls briefly push price above a ceiling at $1,875 before retreating as the session matured. Although earlier gains eased as price strength was unable to rally past a key point of resistance at 48.00, there is still some optimism that ethereum could move beyond $1,900 later in the day after the rate decision is made. At the time of writing, ETH is trading at $1,859.53.
Federal Reserve Rate Decision in Focus
The Federal Reserve rate decision is the primary focus in the market, with investors and traders eagerly awaiting news. The central bank is expected to keep interest rates near zero and maintain its asset purchase program. However, any unexpected announcements could cause significant market volatility.
Market Uncertainty Remains
Despite the recent rebounds, market uncertainty remains high as investors and traders grapple with various economic factors. The COVID-19 pandemic continues to affect economies around the world, and there are concerns about inflation and rising interest rates. As a result, market volatility is likely to persist in the near future.