Bitcoin moved below $28,000 on Thursday as markets reacted to the latest Federal Reserve rate hike. The Fed chose to raise interest rates by 25 basis points as many expected, and to signal another increase this year. Ethereum was also lower on the news, dropping below $1,800.
(BTC) fell below $28,000 on Thursday, as markets continued to react to the recent Federal Reserve rate hike.
The Fed moved to raise interest rates by 25 basis points, while noting that there will be no cuts this year.
The BTC/USD pair fell to an intraday low of $26,760.00 on the news, which comes after a day of trading at a peak of $28,803.34.
From the chart, it appears that the drop came as a result of the Relative Strength Index (RSI) failing to break out of the ceiling at 72.00, the index trailing at 66.54, with the next visible support point at the 62.00 mark.
Overall, the price is still relatively overbought, which may lead to more bears returning to the market in the coming days.
In addition to BTC, ethereum (ETH) also returned to the red on Thursday, with the price dropping below $1,800.
After a high of $1,821.46 on Wednesday, ETH/USD dropped to as low as $1,717.77 earlier in the day’s session.
As a result of the price slide, Ethereum has approached a final support point at $1,715, however the bulls have so far refused a breakout .
Looking at the chart, the 10-day moving average (red) has been in an upward trend, which could be a sign of bullish momentum in the future.
Price strength is currently tracking at 58.02, just above the floor at 57.00, which has sent ETH jumping off its previous lows.