Bitcoin was hovering close to a key price floor near $27,300 on Wednesday, as markets anticipated the upcoming U.S. inflation report. Consumer prices for last month are expected to remain at 5%, which could be seen as justifying the Federal Reserve’s decision to hike rates last week. Ethereum remained above $1,800.
Bitcoin
Bitcoin (BTC) continued to consolidate on Wednesday, as markets awaited the latest inflation report from the United States.
Following a high of $27,824.39 on Tuesday, BTC/USD dropped to an intraday low of $27,375.60 earlier in today’s session.
Today’s move pushed bitcoin close to a key support point at $27,300, however prices have since rebounded.
Overall, it appears that the previous drop took place following a breakout on the relative strength index (RSI).
Price strength moved below a floor at 43.00, with the index tracking at 42.63 at the time of writing.
Bitcoin is now trading at $27,607.96.
Ethereum
Ethereum also hovered close to a support point of its own in today’s session, as overall market sentiment remained uncertain.
ETH/USD hit a bottom of $1,835.70 on Wednesday, which comes a few days removed from price trading above $2,000.
Overall, ethereum is now in the red for a fifth consecutive day, and is down nearly 10% within that period.
This recent run has sent the 25-day (blue) moving average (MA) lower, with the trend line fast approaching its 10-day (red) counterpart.
Although longer-term momentum is slowing, the fact that the 10-day MA is below the 25-day line, means an upwards crossover could lead to a bull run.
Should this occur, there is a good chance that the target for bulls will be to recapture the $2,000 point.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect inflation to fall further today? 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.
Source: https://news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-hovers-near-key-price-floor-ahead-of-us-inflation-report/