Bitcoin was hovering close to a key price floor near $27,300 on Wednesday, as markets anticipated the upcoming U.S. inflation report. Consumer prices for last month are expected to remain at 5%, which could be seen as justifying the Federal Reserve’s decision to hike rates last week. Ethereum remained above $1,800.
Bitcoin (BTC) continued to consolidate on Wednesday, as markets awaited the latest inflation report from the United States.
Following a high of $27,824.39 on Tuesday, BTC/USD dropped to an intraday low of $27,375.60 earlier in today’s session.
Today’s move pushed bitcoin close to a key support point at $27,300, however prices have since rebounded.
Overall, it appears that the previous drop took place following a breakout on the relative strength index (RSI).
Price strength moved below a floor at 43.00, with the index tracking at 42.63 at the time of writing.
Bitcoin is now trading at $27,607.96.
Ethereum also hovered close to a support point of its own in today’s session, as overall market sentiment remained uncertain.
ETH/USD hit a bottom of $1,835.70 on Wednesday, which comes a few days removed from price trading above $2,000.
Overall, ethereum is now in the red for a fifth consecutive day, and is down nearly 10% within that period.
This recent run has sent the 25-day (blue) moving average (MA) lower, with the trend line fast approaching its 10-day (red) counterpart.
Although longer-term momentum is slowing, the fact that the 10-day MA is below the 25-day line, means an upwards crossover could lead to a bull run.
Should this occur, there is a good chance that the target for bulls will be to recapture the $2,000 point.
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Do you expect inflation to fall further today? Leave your thoughts in the comments below.