Bitcoin exceeds $28k

21 Mar 2023

The Bitcoin price once again surpassed the $28,000 mark on Tuesday.

Yet, the world's largest cryptocurrency previously fell under this level as traders consolidated the recent gains ahead of Wednesday's Federal Reserve meeting before edging back up.

Indeed, after hitting the $28,352 high at the start of the week, the Bitcoin price declined to an intraday low of $27,439 on Tuesday, with price swings likely to continue throughout the day.

This is a move away from the recent nine-month high before the Fed's rate decision on Wednesday, which may result in heightened market volatility. 

One indication of the uncertainty is the 14-day relative strength index (RSI), which at the time of writing stood at 71.47, slightly under a 72.00 resistance level.

Traders forecast a 25-basis point rate hike by the Federal Reserve this week, CoinDesk reports. According to a report compiled by Swissblock Insights, the market looks to be eyeing a 0.25 percentage point rate rise. "If the Fed proceeds to raise rates, the market shouldn't react as aggressively. If the Fed pauses, however, we will see a strong move to the upside," the report stated. "We expect volume to decrease and Bitcoin's price action to lose some steam going into the meeting." 

Bitcoin makes up close to 43% of the total cryptocurrency market, the highest share since June last year, as per CoinMarketCap data. As it stands, the total cryptocurrency market's capitalisation has risen 23% to $1.1 billion since 10th March, Reuters reports. 

In addition, the world's second-largest crypto, Ethereum stayed under $1,800 for the second consecutive session, reports.

The price of Ethereum dropped to a low of $1,725 on Tuesday after Monday's high of $1,788. However, ETH remains above the 100-day and 200-day moving averages, both important indicators suggesting the likelihood of a further uptick is higher than the potential for a fall under the $1,500 level.