Bitcoin (BTC) and ether (ETH) prices remained in tight ranges on Thursday amid low trading volume, and undisturbed by the Fed’s widely expected 25 basis point interest rate hike the previous day and the latest mildly encouraging veri that suggests the hot jobs market might be weakening.
Bitcoin was trading at about $28,900, roughly where it has stood most of the past 24 hours, while ether was hovering near $1,900. Jobless claims rose by 13,000 to 242,000 last week, slightly surpassing expectations of an 11,000 increase in claims.
In comments Wednesday following the U.S. central bank’s decision to raise interest rates 25 basis points, Federal Reserve Chair Jerome Powell suggested that the “gradual cooling” of labor markets demonstrated the economy’s resilience and may foreshadow an economic soft landing instead of a much-feared recession.
In what many observers of monetary policy viewed as a slight shift, Powell also noted that a decline in wage growth “to a more sustainable level” would help alleviate inflationary pressures.
Wages and their growth cadence will likely play a significant role in the Federal Open Market Committee’s evaluation of economic conditions, and the merits of future rate increases.
BTC traded along its 20-day moving average, with a narrow trading range that spanned 2.3% from low to high. BTC momentum sits at neutral levels with a Relative Strength Index (RSI) of 51. The BTC RSI is slightly above its 20-day average of 50, but giving little indication of moving higher at the moment.
Ether is trading just below its 20-day average, exhibiting slightly less strength than BTC, while trading in a similarly narrow range. Since April 21, ETH’s price has increased 2% versus a 6% increase for BTC.
ETH’s RSI of 50.19 exceeds its 20 day-moving average of 48.01, and has accelerated by 10% since April 21. The difference in pace between ETH’s increased price versus the RSI does not indicate a divergence, but that additional upside exists for the asset.
A divergence between price and technical indicators generally occurs when they are moving in opposite directions. In this instance, the direction is the same, but at different speeds.
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