Bitcoin, Ethereum Technical Analysis: BTC Heads Towards $40,000 Following FOMC

Bitcoin moved closer to $40,000 during Thursday’s session, as traders continued to react to yesterday’s Fed rate hike. The FOMC opted to increase interest rates by 0.5% during May’s meeting, which is the largest hike in over twenty years.

Bitcoin

Bitcoin rose for a second consecutive session on Thursday, as bulls were buoyed by the Fed’s decision to increase interest rates.

Following yesterday’s surge, BTC/USD climbed even higher during today’s session, as it moved closer to the $40,000 level.

BTC hit an intraday high of $39,902.95 earlier today, which is the highest point prices have reached since last Thursday.

BTC/USD – Daily Chart

Today’s rally was halted by a key resistance point of $39,800, which has historically been the main obstacle preventing prices entering $40,000.

Looking at the chart, this resistance coincided with another ceiling within the RSI indicator, as price strength was unable to move past 48.70.

As we identified yesterday, this level of resistance would be an area of contention for both bulls and bears, and it seems that bears have so far won this battle.

Ethereum

ETH was also higher during today’s session, as the uncertainty surrounding the Federal Open Market Committee (FOMC) meeting finally passed.

As this cloud passed, bulls seemed to be tentatively returning to crypto markets, with ETH hitting a one-week high as a result.

This high was the $2,956.69 point which ETH/USD hit earlier today, and comes following a low of $2,829.99 yesterday.

ETH/USD – Daily Chart

Thursday’s move saw ethereum marginally pass its long-term resistance level of $2,950, climbing over 2% from yesterday’s low in the process.

Despite this upwards momentum, some bulls have backed away as we hit resistance, with earlier gains easing, likely as a result of positions being closed.

Momentum however continues to be bullish, as the 14-day RSI is tracking at 48.50, which is above its own ceiling.