Bitcoin fell below the $27,000 level on May 17, as market uncertainty remained high amidst the debt ceiling crisis in the United States. Congress continues to negotiate terms of a potential increase to the limit, before the U.S. government runs out of cash on June 1. Ethereum also dropped, breaking out of the $1,800 level.
Bitcoin
Bitcoin (BTC) moved below the $27,000 level on Wednesday, following yesterday’s U.S. Retail Sales report.
BTC/USD moved to a low of $26,785.41 earlier in today’s session, which was following Tuesday’s peak at $27,223.07.
Today’s sell-off comes as bitcoin was unable to move beyond its key price ceiling at the $27,300 mark, leading to a shift in bearish sentiment.
Looking at the chart, the decline also coincided with the 14-day relative strength index (RSI) failing to break its point of resistance at 42.00.
As of writing, price strength is tracking at 38.08, and seems to be heading close to a support zone of 36.00.
Should this point be reached, then there is a strong possibility that BTC could slip below $26,000.
Ethereum
In addition to BTC, ethereum (ETH) also trended lower, falling under the $1,800 level in today’s session.
Following a high of $1,835.55 on Tuesday, ETH/USD plunged to an intraday low of $1,792.08 earlier in the day.
As a result of today’s drop in price, ethereum neared a long-term floor of $1,790, which is where price has retreated to during the past week.
Similar to BTC, the RSI here is also edging closer to a floor of its own, which in this instance is at the 41.00 point.
Price strength, which is currently at the 41.97 level, was unable to breach a resistance zone of 47.00, leading to today’s drop-off.
There is a good chance that ETH could change course in the upcoming days, providing the floor at 41.00 remains firm.
Register your email here to get weekly price analysis updates sent to your inbox:
What else is behind today’s drop in crypto prices? Leave your thoughts in the comments below.
from Bitcoin News https://ift.tt/lvCHN9g
Comments
Post a Comment