Crypto prices plunged as the weekend commenced, following yesterday’s U.S. inflation report, which came in at a 40-year high of 8.6%. BTC fell below $29,000, while ETH dropped to its lowest level in 15 months.
Bitcoin
BTC finally made a move late Friday night into Saturday after days of consolidation. This was due to crypto price responses to the recent inflation report.
The United States data showed that inflation was at an all-time high of 8.6% for the 40th year. That is more than many people expected.
As a result, some investors panicked and sold off their investments in crypto markets.
BTC/USD plunged to $28,911.36 intraday to begin the weekend. This was their lowest point in nearly two weeks.
The drop in prices is not enough to support $28,800. However, some believe that the selling will intensify over the weekend.
If the 14-day RSI moves below its support level of 40.50 then this could be a sign that our expectation has come true.
Ethereum
Saturday saw ETH fall to its lowest point in over a year, as prices of the world’s second-largest crypto token plunged.
To start the weekend, ETH/USD fell by nearly $300, hitting a bottom of $1,583.10 earlier in today’s session.
This price is at its lowest since March 2013, and prices are now above $1,720.
After days of consolidation, the price strength also waned with the RSI easily breaking its 36-year old floor.
At the time of writing, it is tracking at 30.96. That is near a support level of 29.30.
Some expect ETH prices to drop like bitcoin in the next few days. This floor in the RSI may be a target that bears have in mind.
What is the impact of inflation on crypto price? Comment below to share your views.
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