Bitcoin and Ethereum both dropped below their key prices on Tuesday as the crypto bears continued pushing down prices. Both have since recovered these levels, despite the fact that U.S. inflation increased to an unprecedented 8.5% over the previous year. At the time of writing, crypto markets fell 1%.
Bitcoin
BTC dropped below its key level of $40,000 earlier in today’s session, as recent losses in value continued to mount.
The BTC/USD intraday high was $42,000, but it fell to $39373.06 Tuesday, after a low above that level earlier in the week.
Although this is the lowest BTC traded level since March 16th, declines have gotten somewhat lessening as the floor was reached.
The chart shows that this floor was located at $39,450. This gave bulls confidence to re-enter market after previous rebounded at this level.
Since today’s low, BTC is now trading at $40,270, meaning that losses have eased, and now sit at negative 1.82% for the day.
The price strength remains oversold which may be another benefit for bulls trying to purchase recent falls in value.
Ethereum
In addition to BTC, ethereum also fell below a key support point earlier in today’s session, before regaining its footing.
The ETH/USD fell below $3,000 on March 23rd, and then it hit an intraday low at $2,957.87.
However, ETH’s performance has improved somewhat after the U.S. released inflation data that showed consumer prices increased to a record 8.5% annualized.
As of writing, ETH is now trading above its floor of $2,950, as it currently sits at $3,050, which is roughly 0.9% lower than yesterday’s high.
The RSI currently lies below 50 resistance, which could indicate that price strength will continue to rise.
However, momentum in recent times has brought about moving averages at the edge of a cross. Bulls have an opportunity to avoid this by entering the market again.
Is there any chance that market uncertainty will be marginally lessened now that we have inflation data? Please leave your comments.
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