Bitcoin and ethereum dropped below $1,600 after a quick rally to above $20,000, and $1,600, respectively. The decline comes as momentum surrounding yesterday’s nonfarm payrolls report faded. Bitcoin was close to $20,500 support, while ethereum traded at $1,550 floor.
Bitcoin
Bitcoin (BTC). Bitcoin prices were back under $20,000 for the weekend as the price of the token moved closer towards a critical support level.
Initial bullish momentum following last month’s payrolls has seemingly faded, with markets gearing up an economic downturn.
Although Friday’s figure of 315,000 jobs was better than expected, this was lower than July’s number of 528,000.
BTC/USD dropped to $19 779 95 on Saturday as a consequence. It was just 24 hours after reaching a record high of $20 405 5.57.
Looking at the chart, bitcoin is now on the cusp of colliding with its price floor of $19,500, which hasn’t been broken since July 16.
However, if relative strength index (RSI) drops to its floor at 33.95 then this breakout is likely.
Ethereum
In addition to BTC, ethereum (ETH) was also lower during Saturday’s session, as the token once again fell below $1,600.
Following Friday’s high of $1633.18, the price of ETH/USD dropped by $100 and reached a record low of $1542.30.
The drop in ethereum saw it briefly rise from $1,550 support to begin the weekend as crypto bearish sentiments returned.
Profit takers chose to exit their trades rather than keep them open, and earlier declines are now less severe.
Although the prices are now higher than their earlier level, some fear further falls.
Should volatility continue to favor the downside, bears may be looking at a floor of $1420 as an option.
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