Bitcoin and Ethereum rise ahead of Fed rate decision

Bitcoin continues to trade near $18,000 on Wednesday as markets remain bullish following the latest US inflation report. After the data, which saw consumer prices rise to 7.1%, many expect the Federal Reserve to raise interest rates by 50 basis points. Ethereum was also higher today, staying close to five-week highs.

Bitcoin

Bitcoin traded near the $18,000 level on Wednesday, with markets remaining higher following the latest US inflation report. After a low of $17,412.19 on Tuesday, BTC rallied to a high of $17,930.09 earlier in today’s session.

As a result of this move, BTC continues to trade near its highest point since November 9, when the price last exceeded $18,000.

Looking at the chart, this latest increase in momentum occurred as the 14-day Relative Strength Index (RSI) reached its highest point since early November. At the time of writing, the index is sitting at the 60.00 level, which is slightly below a key high at the 60.75 level.

If bitcoin rises above this point, we could see the coin break above the $18,000 threshold again.

Ethereum

Ethereum also traded near a multi-week high during today’s session as traders prepare for the US Federal Reserve’s policy meeting. Many expect the Fed to raise interest rates by 50 basis points after the better-than-expected inflation report.

Ethereum hit a high of $1,341.44 on Wednesday, less than 24 hours after hitting a low of $1,289.23.

As seen on the chart, Ethereum remains close to five-week highs, with prices in the green for a third session in a row. As with bitcoin in the past, the RSI is now close to a key resistance level of 59.00, with a current reading of 58.06.

The pressure in the market could intensify if the bulls manage to break through this threshold, which could lead to prices rising towards $1,400.

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