Bitcoin fell lower on Friday, as the token slipped below a key resistance level during today’s session. After a small rally this week, bitcoin bears reacted to volatility by taking action. Ethereum fell back below $1700, as well.
Bitcoin
After a brief rally, bitcoin (BTC) was back in red Friday as it fell below the key resistance level.
The world’s largest cryptocurrency fell to an intraday low of $21,171.79, which is nearly $600 lower than Thursday’s high at $21,744.87.
Today’s decline comes as market sentiment once again shifted to bearish territory, following a breakout attempt at the $21,600 price ceiling.
BTC/USD was able to slightly climb above that level, but bulls chose to sell earlier positions and instead seek out gains.
Bears saw this as a sign and reentered bitcoin’s market. Now they look to push it closer to $20,000.
As of writing, there is slight hope that today’s sell-off will ease, and this comes as the 14-day relative strength index (RSI) has hit a support level of 44.80.
If this holds, we might see BTC rally over the weekend.
Ethereum
Ethereum (ETH) traded down on Friday as well. The token fell below $1,700 as sentiment about The Merge event slightly faded.
Today, the ETH/USD exchange rate has fallen to $1,628.17. That’s roughly $90 lower than its Thursday high of $1.718.18.
Like with bitcoin, Friday’s move comes as ethereum bulls failed to sustain a breakout of a key price ceiling.
The chart shows that the ceiling was at $1,705 but bearish traders appear to now be looking for support at $1,550.
With the RSI weakening, the 10-day moving average (red) has extended its downward trend versus that of its 25-day counterpart (blue).
Currently the index tracks at 45.58. However, it appears to be moving towards a floor of 42.30. This will most likely allow ETH to drop below $1,600.
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