Bitcoin began the week with a negative trend, and prices fell Monday for the second straight session. Following a recent run towards $22,000, the world’s largest crypto dropped below $21,000 earlier today, with ETH slipping below $1,200.
Bitcoin
Bitcoin fell to $21,000 Monday after a meeting with a major resistance level.
Since hitting its resistance level of $22,070 on Friday, BTC has fallen for three straight sessions, with today’s decline hitting a low of $20,395.39.
This caused the token to fall below the $20,500 interim support, usually the only defense against prices falling below $20,000.
We could witness the breaking of the $20,000 barrier if bearish momentum continues. However, bears are likely to target $18,845.
With the 14-day RSI quickly falling toward 37.90, price strength appears to be moving in this direction.
However, it is important to remember that the 10-day average crossed its 25-day counterpart. Should this continue, bullish sentiment might return.
Ethereum
Bullish sentiment wasn’t evident for ETH. It saw its gains drop soon after reaching a peak of $1,187.87 Sunday.
The world’s second-largest cryptocurrency fell to a floor of $1,139.91 on Monday, as price moved to a lower low for the fourth straight day.
Prices have risen slightly as of writing. ETH/USD is now trading at $1147.49 with relative strength tracking at the floor.
After a failure to break the 49.40 ceiling, the 14 day RSI indicator appears to be tracking at its long-term support at 41.10.
Momentum seems to have shifted, with bears now controlling sentiment, despite a similar crossover of moving averages to that of bitcoin’s.
Ahead of this week’s FOMC meeting, it will be interesting to see if prices consolidate, or rally, ahead of an expected 75 basis point interest rate hike.
What do you think about a Fed rate hike affecting crypto prices. Comment below to share your views.
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