Bitcoin fell towards the $20,000 mark on Thursday, after the U.S. Federal Reserve once again moved to increase interest rates. The Fed hiked rates by 75 basis points (bps), as it chose to maintain its current hawkish policy. Ethereum, which initially surged on the news, was also lower in today’s session.
Bitcoin (BTC) dropped in Thursday’s session, as bearish sentiment rose, following the aftermath of yesterday’s Fed meeting.
Following the Federal Reserve’s decision to maintain current hawkish policy by raising rates, BTC/USD surged to a peak of $20,742.81.
However, this sentiment has shifted, as markets now expect this to be the last such hike by the Fed, who may begin to pivot.
BTC/USD fell to a low of $20,087.13 earlier in the day, and came as bears attempted to take the token below $20,000.
As of writing this, the 14-day relative strength index (RSI) is now tracking at 51.84, which is below a floor of 53.00.
Should this momentum continue into the weekend, many expect BTC to be trading close to its long-term support of $19,600.
In addition to bitcoin, ethereum (ETH) was also volatile following the Fed’s decision to hike rates by 75 basis points.
ETH/USD which initially rose to a high of $1,613.41 on the news, slipped to a intraday low of $1,507.24 on thursday.
The move sees the token now fall for a fifth straight session, following last week’s gains, which saw prices hit a 6-week high.
Looking at the chart, the decline has sent the RSI to a long term floor of 58.00, with bears attempting to break below this point.
As of writing, bulls have so far rejected this, with the world’s second largest token somewhat rebounding.
ETH is currently trading at $1,531.53, with the 10-day (red) moving average still upwards facing, which could be a sign of resilient bulls awaiting the time to increase market pressure.