Bitcoin dropped to a low of two years on Wednesday due to the FTX token sell-off. After a 30% drop, FTX token plunged as high as 80% as Binance announced its intent to acquire the failed exchange. Ethereum dropped below $1,200, as well.
Bitcoin (BTC), which fell to its lowest point in 2 years, was due to markets continuing to react to volatility caused by the FTX/Binance scandal.
The world’s largest cryptocurrency plunged to a low of $17,402.55 earlier in today’s session, less than a day after trading at a high of $20,582.24.
Prices plummeted by 10% in this move. This brought the BTC/USD level to its lowest since November 2020.
You can see that the drop in token value was intensified after it fell below $19,000 as its long-term support.
The 14-day relative weakness index (RSI), has fallen to a floor, too, and is now at 29.75.
BTC is now at $17.718.95 and some bulls are hoping to establish support around $17.900. This has been a slight rebound from its earlier lows.
In addition to BTC, ethereum (ETH) also fell considerably in today’s session, as prices dropped below $1,200 in the process.
After a Tuesday high of $1564.55, ETH/USD fell as much as 20% to $1,157.23 on Tuesday.
This was ETH’s lowest point since July 14th, when it traded slightly higher than $1,000.
The RSI for this ethereum charts is tracking at 33.00. That’s marginally higher than the floor of 32.50.
This reading (which is the worst reading over the past five-months) means that prices have entered an area of extreme volatility, which, according to long-term bulls, indicates that the market has reached its bottom.
However, the red 10-day moving mean continues to drop. Should this continue, it is possible that ETH may move below $1,000.
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Have we reached a bottom, or will this week’s sell-off intensify? Please leave your comments.
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