Bitcoin was consolidating on Wednesday as the US dollar continued to strengthen against several G7 currencies. A strong dollar means that demand for cryptocurrencies generally falls, with global market capitalization trading in the red at the time of writing. Ethereum was also lower today, falling as it remained below $1,300.
Bitcoin (BTC) continued to consolidate during today’s session as prices hovered around the $17,000 mark on the day of the bump.
After a low of $16,939.92 on Tuesday, BTC/USD hit an intraday high of $17,109.38 earlier in today’s session.
The move saw bitcoin continue to trade below its recent resistance level of $17,180, which has been mostly in place since last month.
Looking at the chart, the consolidation comes as the Relative Strength Index (RSI) also remained below its own high of 50.00.
At the time of writing, the index is currently trailing the 47.80 level and appears to be heading for a bottom at 45.80.
If we see this decline happening, BTC will likely trade at a support point of $16,800 in the coming days.
In addition to bitcoin, Ethereum (ETH) was also in the red during Wednesday’s session, following a false break of a key resistance point.
ETH/USD remained below its long-term high of $1,300 today, which comes as volatility in the crypto markets intensified.
The world’s second-largest cryptocurrency slipped to a low of $1,247.63, less than 24 hours after hitting a high of $1,272.69.
As can be seen on the chart, this happened despite the 10-day (red) moving average still slightly higher.
However, the momentum seems to be moving slowly, with the RSI currently sitting at 49.56, which is below a ceiling of 51.00.
The market turmoil could continue until next week’s Federal Reserve meeting, where the bank is expected to change its current policy.
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