• The FOMC meeting and potential rate hikes by the Fed caused a significant correction in the cryptocurrency market, with Bitcoin and Ether prices dropping significantly.
• Bitcoin and Ether have dropped below their Bollinger Bands indicating an oversold condition.
• Chairman Powell has hinted at two more rate hikes this year, which has induced a strong selling pressure in Bitcoin and Ether price.
FOMC Meeting Causes Major Correction in Crypto Market
The Federal Open Market Committee (FOMC) meeting earlier this week on Tuesday caused a major correction in the cryptocurrency market, with Bitcoin (BTC) and Ether (ETH) prices dropping significantly. The hint of future rate hikes by the Fed has further induced a strong selling pressure in both assets, leading to their prices entering into an oversold territory.
Bitcoin & Ether Drop Below Their Bollinger Bands
The price of both Bitcoin and Ethereum have dropped below their respective lower range of Bollinger Bands, signaling an event of significance. Bollinger Bands are used to track an asset’s average price over 20 days and show two standard deviations above or below from it. A breakage from either side is considered as a significant event for investors to take note of.
Chairman Powell Hints At Two More Rate Hikes This Year
Chairman Jerome Powell’s recent statement that there will be two more rate hikes this year has further added fuel to the fire causing even more downside pressure on both BTC & ETH prices. He also mentioned about the need to consider economic “lags” as a reason for keeping interest rates steady at 5-5.25%. This implies that despite signs of progress, inflation is still seen as a major issue by the Fed.
RSI For Both Assets Entering Oversold Territory
The Relative Strength Index (RSI) for both assets dropped considerably since the FOMC meeting, indicating that both BTC & ETH are now entering into an oversold condition after experiencing such high volatility levels recently due to rising inflationary pressures from central banks around the world.
Will BTC Price Fall To $20K Or Explode To $30K?
It remains to be seen if this slump in crypto market will continue or if there is enough buying momentum left within these assets for them to recover back above these levels again soon before any further rate hikes from central banks come into play later this year or not? Some experts suggest that we could potentially see BTC price falling all way back down towards $20K level while some others believe that it may explode up towards $30K level depending upon overall sentiment within crypto markets going forward from hereon out!