This week saw a selloff in crypto currencies, with bitcoin reaching its lowest level since July. Ethereum also traded in red and hit multi-month highs. As a result, the global crypto market cap fell close to 9 percent at the time this article was written.
Bitcoin
Bitcoin (BTC) was the primary focus of recent crypto price declines. It traded 3% lower Monday at the time of writing, and nearly 20% below its previous position last week.
As of writing, BTC/USD hit an intraday low of $33,184.06 during today’s session, which is its lowest level since July 23rd last year. Today’s move comes as prices broke below the recent support level of $40,135 last Thursday and extended throughout the weekend.
On a daily basis, BTC has reached $34,200 according to the chart. Although the prices moved above the interim support, bulls claim that it could have been a false breakout. They point out the rally of the July end as evidence for an eventual reversal.
The RSI indicates that the price strength of the market is lower than 30 (currently at 22). This typically means that it’s oversold. The real bullish momentum is expected to rise above 30, so we could see some consolidation.
Ethereum
Ethereum (ETH) was down more than bitcoin to start the week, as the world’s second-largest cryptocurrency was trading over 8% lower during the session. The ETH/USD traded at $2,172.30 Monday. This is its lowest point since July 27th.
The chart above is similar to BTC. It suggests that prices have oversold. However, the 10-day EMA shows that prices could still be bearish. A descending triangle highlights a possible continuation of current trends.
As a possible target for the next rally, Ethereum bulls will probably be keeping an eye on the Fibonacci 0.236% level.
Should Be careful when trying to catch what looks like a falling knife. We’d love to hear your views on the subject.
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