Bitcoin, Ethereum Technical Analysis: Market Holds Its Breath for Fed’s Upcoming Policy Decision 

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As November 2023 unfolds, the crypto economy is buzzing with market activity, showcasing a striking performance from bitcoin (BTC) alongside a steady progression from ethereum (ETH). Crypto markets are calm and consolidated at the moment, as market observers and traders wait for the news stemming from the Federal Open Market Committee (FOMC) policy announcement.

Bitcoin and Ethereum Show Divergent Paths Navigating Uncertain Waters

Hours before the upcoming FOMC meeting, the crypto economy’s net value is coasting along at $1.3 trillion. Investors are waiting to see whether or not the U.S. Federal Reserve will raise the federal funds rate. However, the CME Fedwatch Tool shows a 97% chance a rate hike will not come to fruition. U.S. 10-year Treasury yields are lower, but the long-term bonds are still at a 16-year high. Equity futures have dropped slightly with the FOMC expectations and anticipation.

Bitcoin

Currently, at the time of writing, bitcoin (BTC) is exchanging hands at $34,388.22 per unit. The leading crypto asset has recorded a 24-hour range between $34,174 and $34,703 per BTC. Bitcoin commands approximately $8.97 billion in global trade volume on Wednesday, and its market cap dominates by 50.9%.

Bitcoin’s current state reflects a strong bullish momentum, underscored by its significant price surge over the last fortnight. The relative strength index (RSI) at 79 and Stochastic at 75 both point toward overbought conditions, signaling the potential for a price correction or consolidation in the near term. However, the moving averages tell a different story; with the exponential moving average (EMA) at 33,586 and simple moving average (SMA) at 34,173, both indicators suggest a bullish signal, reinforcing the prevailing upward trend.

Despite the positive price movement, the discrepancy between the oscillators and moving averages necessitates caution. The overbought conditions indicated by the RSI and Stochastic could lead to increased volatility, and traders should be prepared for potential short-term price fluctuations. The moving averages, while bullish, could also be interpreted in conjunction with the caution signals shown by the two oscillators.

Ethereum

Presently, ethereum’s (ETH) price is coasting along at $1,796 per unit. ETH has witnessed a 24-hour range of $1,786 to $1,827 per ether. Ethereum’s volume is higher than BTC’s today with $10.56 billion traded over the last 24 hours. In terms of market dominance, ETH’s market valuation amounts to 16.4% of the $1.3 trillion crypto economy.

Ethereum presents a more tempered growth story, with a 3.9% increase in price over the past month. The oscillators, with an RSI of 67 and Stochastic of 76, do not indicate an extreme market condition, suggesting a more stable and neutral environment compared to Bitcoin. The moving averages, with an EMA of 1,771 and SMA of 1,792, provide additional support for a positive outlook, though the growth is not as pronounced as that of Bitcoin.

The steadier price movement of Ethereum, coupled with the less extreme oscillator values, positions ETH as a potentially less volatile option in the current market. However, traders should still exercise caution and consider a range of indicators and market conditions before making trading decisions. The positive trend indicated by the moving averages is a promising sign, but it is crucial to remain vigilant and stay updated with market developments.

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Do you think today’s FOMC policy announcement will impact crypto markets like Bitcoin and Ethereum? Leave your thoughts in the comments below.