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Price Point
Bitcoin (BTC) and ether (ETH) continued to trade in a tight trading range Tuesday with traders expecting prices to remain unchanged for another week as there are no potentially risky events or catalysts on the horizon.
Traders are focusing on next week’s Federal Reserve rate decision where the Fed is expected to hike by 75 basis points again. After that, traders are expecting the consolidation phase for cryptocurrencies to remain.
“Currently, I am leaning towards excluding a rally to the upside, and I expect the consolidation phase to stay,” Matteo Bottacini, a trader at Crypto Finance AG, wrote in a morning note. “I wouldn’t be surprised if we again test May/June lows for both BTC and ETH."
Bitcoin reached lows of $18,900 in May, and ether dropped to lows of $880 in mid-June.
In traditional markets, U.S. stock futures were little changed after the Dow Jones Industrial Average reached its highest closing level in six weeks on Monday.
Bitcoin market share hits two-year high
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The S&P 500's weekly chart has flipped bullish in a positive sign for risky assets, including cryptocurrencies.
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The chart tweeted by FS Insight's Matt Cerminaro shows a bullish divergence of the 14-week relative strength index (RSI), a popular technical indicator.
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Bullish RSI divergence occurs when the price makes a lower low, but the RSI makes a higher low, indicating a trend reversal higher.