Following three consecutive sessions of declines, BTC was fast approaching its support level of $40,000 on Friday, as markets prepared for February’s nonfarm payrolls report. This was also the case for ETH, which fell below its support level of $40,000 and is now at its ceiling of $2,500.
Bitcoin
BTC bulls have been few and far between over the last few days, as the world’s largest cryptocurrency faced growing pressure from bears.
This pressure came following Tuesday’s climb to the resistance level of $45,000, which then triggered an onslaught of short sellers, who entered the market.
BTC has fallen almost 6% since the time of writing. It is trading at $40.845.52 and the 14-day RSI tracking is at 49.5.
The chart clearly shows BTC is now heading for support. It’s located at $40,056. The RSI appears to be moving for its own floor at 47.
Also, the 25-day moving average (blue) seems to have changed direction once more with momentum shifting downwards.
At the moment, it seems like this bearish pressure will invariably push prices to their floor. Market uncertainty may then kick in.
Ethereum
Similar to bitcoin, ETH is also down for a third straight day, with the price of the world’s second-largest crypto down 7% as of writing.
Earlier in today’s session, ETH/USD hit intraday high of $2,891.03, however these gains were short lived, and ethereum is now trading at $2,702.07.
This is marginally higher than today’s low of $2,680.50, however as Friday’s session matures, many expect further drops in price.
According to bears, the floor at $2,550 appears to be their target. This has been the case since when prices reached the $3,000 resistance.
The 14-day RSI tracking has reached 44.8. This indicates that price strength is now in oversold territory. However, it seems that the 39 level might be a reasonable floor.
Is it possible that prices will fall even more as we head into weekend? Please leave your comments.
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