As bearish sentiment remains in crypto markets, bitcoin dropped to the lowest point since June on Monday. The token has fallen lower in consecutive sessions following last week’s U.S. inflation report, and the fall comes ahead of the upcoming U.S. Federal Open Market Committee meeting. Ethereum also fell, reaching a multimonth high.
Bitcoin
Bitcoin (BTC), on the other hand, fell to an intra-week low of $43 million. This is due to the bearish sentiment that remains high in cryptocurrency markets.
The intraday low for BTC/USD was $18,390.32 at 1:03 PM. This is after the breakout of a $18,645 floor.
This drop caused bitcoin to fall to its lowest level since June 18, when this support level was last broken.
Many believe the decline comes ahead of this week’s U.S. Federal Open Market Committee meeting, where it is expected that interest rates will be hiked.
Looking at the chart, Monday’s sell-off comes as the 14-day relative strength index (RSI) fell below a floor of its own at 41.30.
At the time of writing, trading is below 38.00. This could indicate that it is in an oversold area, which may be positive for people who anticipate a eventual turnaround.
Ethereum
Last week was a historic week for ethereum (ETH), as the highly anticipated Merge took place, seeing the token become “green”.
However, since then, prices have dropped considerably, with today’s decline taking the token to a low of $1,287.42.
This comes less than a week after the world’s second largest cryptocurrency was trading above $1,700.
The chart shows that ETH/USD fell to the lowest level since July 16th, when it was rising after a spell of below $1,000.
Moving averages have also seen a shift in momentum, with their 10-day trend line (red) crossing its counterpart (blue), in a downward direction.
Many believe we could still experience slippages with bears trying to steal ethereum lower than $1,000.
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