Bitcoin and other cryptocurrencies were trading higher on Wednesday ahead of the Federal Reserve's policy meeting scheduled for today, where the US central bank is expected to make no changes to interest rates. The ether-bitcoin ratio fell to a 14-month low. Ethereum co-founder Vitalik Buterin moved coins to crypto exchanges, possibly as a prelude to the sale, experts said.
Bitcoin posted strong gains as the largest crypto token surged over a percent, reclaiming $27,000 levels. However, its largest pair, Ethereum, rose slightly but did not surpass the $1,650 mark. Altcoin price action remained on the positive side in the early hours.
Currently, Bitcoin is trading above the $27,000 mark, and this price increase could be because Japan's top investment bank Nomura is making headlines by introducing a Bitcoin-based fund designed specifically for institutional investors, said Edul Patel, CEO and co-founder of Mudrex. .
"Market sentiments currently range from neutral to bullish as all eyes remain fixed on the US Federal Reserve's upcoming FOMC decision regarding federal interest rates. Meanwhile, Ethereum is trading above interestingly, Grayscale recently submitted an application for a new Ethereum futures ETF to the US SEC," he said.
With a few exceptions, all major crypto tokens were trading higher on Wednesday. Toncoin rose more than 3 percent, while XRP and Polygon gained more than 2 percent each. Among the stragglers, Solana and Cardano lost around half a percent each in the first few hours.
The global cryptocurrency market capitalization was trading significantly higher, reaching the $1.08 trillion mark, as it rose by around one percent in the past 24 hours. However, total trading volume fell more than 8 percent to $27.71 billion.
Bitcoin's value has increased more than 1 percent. It is currently trading at its 50-day simple moving average, which has previously acted as a resistance level. It is worth noting that Bitcoin open interest has also seen a recent increase, the CoinDCX research team said.
"In addition, Citi is making significant strides in its services for institutional clients by adopting blockchain technology. Citi Token Services, launched on Monday, allows clients to tokenize their deposits for instant global transfers. Additionally, the bank is now using smart contracts to "automate the trading process. These developments are positive for the crypto space," he said.
Image: Crypto Chart Price
Giottus Crypto Platform Technical View
Bitcoin has risen above $27,000 ahead of today's FOMC meeting. The price action has seen a valid bullish entry.
The bullish momentum could potentially push the price towards the resistance level of $27,785 (200-day MA). A break above could see the asset test $28,000.
Image: Graphic-BTC
BTC's RSI is currently hovering around 60 and has started to move sideways, implying decreasing selling pressure. In the event of a decline, the most recent low ($26,650) serves as early support level, and the $25,750 zone provides the next line of defense.
Main levels:
Support: $26,650, $25,750
Resistance: $27,785, $28,812
(The opinions and recommendations provided in this section are those of the analysts and do not represent those of Business Today. Please consult your financial advisor before taking any position in the assets mentioned.)
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