Despite the rate hike meeting the expectation, S&P 500 and Bitcoin witnessed a tumble 

The Federal Reserve raised the interest rate by 75 basis points on 22nd September 2022. Further, Fed Chair Jerome Powell predicted another raise by 125 basis points before the end of the year. The increment will raise the benchmark rate to 4.4% by the end of the year, which is more than the rate of 3.8% predicted in June. The Fed hinted that the rate would be reduced only in 2024. 

The hike in the interest rate has affected the crypto market and has resulted in an aggressive sell-off, causing Bitcoin to slip by 10%, breaking its previous support of $18,200. The hike caused the stock to drop by 3% and wiped $1 trillion from the S&P market cap. Moreover, DXY slipped to $110.86, thus breaking its 20-year all-time high. 

Even though Bitcoin is bouncing back, we are likely to witness a weakness in the BTC price. As of now, bulls are keeping an eye on $17,700 as the significant support. 

Heatmaps for cryptocurrencies (source: Coin360) 

Bitcoin Technical Analysis 

The upper limit of Bitcoin is reduced from $20,500 to $19,300, making it rangebound. Utilizing the Bolinger Bands, it can be understood that $18,500 is the short-term support that is to be protected by the Bulls till the time sellers are exhausted. Further, the bullish divergence has been created between the last day and early September prices on the given daily chart.  

Bitcoin: Technical Analysis (Source: Coin 360) 

Ethereum Technical Analysis 

Ethereum bounced from $1,220 and liquidated high leverage shorts in a relief rally to $1,311. This move of Ethereum is in a retracement, with Ethereum slipping to $1,280 hours before S&P 500 opened. It is significant for Ethereum to hold this line to avoid a sharp fall in its prices that can further result in cascading liquidations. 

Ethereum Technical Analysis: (Source: Coin360) 

The top altcoin gainers are (Algo) Algorand with +14.03%, CEL (Celsius) with +11.09%, and Ripple (XRP) with +9.17%.  

The losers are EOS with a fall of -6.04%, ETH(Ethereum) with a fall of (-5.64%), and Lido with a fall of (-5.54%).