The Federal Reserve in a recent meeting approved an increase of a half-per cent of the interest rate. It also announced its plans to squeeze its $9 trillion asset portfolio in an attempt to reduce the inflation which is running at a 4-decade high. Major Stocks, Cryptos and Gold witnessed a significant spike, while the DXY index trembled down from its crucial resistance.
The top 2 cryptos Bitcoin & Ethereum also made a minor jump above $39K and $2900 resp but still struggling to hit $40K & $3K. While the crucial resistance remains extremely far off from the current levels, it is believed that achieving these levels may be a very tedious job for the assets.
Bitcoin price surpassed the $40,000 level immediately after the FOMC meeting came up with their decisions. However, the price faced a strong rejection again which is currently restricting the price to around $39,500. Yet, the current consolidation may not be the resurgence of the bearish trend as a strong upward trajectory is fast approaching.
Bitcoin price was swinging around its bottoms around $37,500 a couple of days before. The flip was further fueled by the FOMC’s decision to hike the interest rates. However, despite the impact appearing to have eased out, the possibility of the BTC price closing the daily trade above $40,000 is pretty high. The asset after a breakout from the lower bullish flag is trending again within the newly formed bullish flag. And hence a break which may take some more time may uplift the price beyond $40,000 and above $40,500 in an extended rally.
Ethereum’s price was also stuck below $2900 for the past many days while each attempt of surpassing these levels dragged the price close to $2700. However, the FOMC spike led to a huge jump of nearly 5% which uplifted the price above $2900 levels. Currently, the ETH prices are consolidating very hard, yet also display a huge possibility of breaking through this accumulation phase very soon.
The On-balance volume(OBV) which is a momentum indicator that uses volume flow to predict changes is pretty bullish for more than a month. The OBV has held the support throughout April and despite forming lower highs & lows, sustained firmly above these levels. However, the OBV with the recent price change is attempting a bullish breakout which indicates a massive upswing incoming for the ETH price.
Collectively, Bitcoin & Ethereum price change does hold their own significance within the crypto space as many altcoins tend to follow them. A slight strength in the BTC price painted almost all the cryptos in green but still lag some momentum to barge in through the pivotal resistance. On the other hand ETH price, no doubt is pretty uncertain but majorly may lead to a healthy uptrend soon.