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 inflation report in the United States. Following 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, and remained near a five-week high.

Bitcoin

Bitcoin was trading near the $18,000 level on Wednesday, with markets remaining up after the latest U.S. inflation report. After a low of $17,412.19 on Tuesday, BTC jumped 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 recent uptick 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 at the 60.00 level, which is slightly below a key ceiling at the 60.75 level.

If bitcoin surpasses this point, we could see the coin surpass the $18,000 mark again.

Ethereum

Ethereum also traded near a multi-week high in today’s session as traders prepare for the U.S. Federal Reserve’s policy meeting. Many expect the Fed to raise interest rates by 50 basis points following 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 near a five-week high, with prices in the green for a third consecutive session. As with bitcoin earlier, the RSI is now near a key resistance level of 59.00, with a current reading of 58.06.

Pressure on the market could intensify if the bulls manage to break through this level, which could lead to a rise in prices towards $1,400.