As markets prepare for the big week’s economic data, Bitcoin traded near its support level on Monday. The headline release will be Wednesday’s U.S. inflation report, which is forecasted to come in at 8.1% for September, which is lower than August’s rate of 8.3%. Ethereum also fell to its lowest point in one week to open the week.
As markets prepare for big economic data week, Bitcoin began the week at its seven-day lowest.
BTC/USD dropped to $19162.31 at the bottom on Monday. This was below the key support of $193,000
The bulls have since returned to the markets, pushing prices higher than before they hit this support.
Looking at the chart, today’s drop in price came as the 14-day relative strength index (RSI), fell to a bottom of its own.
The index currently tracks 45.47 as of writing. This is slightly above the support level of 45.00. However, bulls have so far failed to breakout.
This could continue, and bitcoin may bounce back to $20,000 if this happens.
Bitcoin and ethereum (ETH), were also close to their one-week lows on Monday. Prices are also expected to break out.
The world’s second largest cryptocurrency dropped to a low of $1,300.00 to start the week, however bears failed to take the token below this point.
The ETH/USD trades at the lowest level since October 3rd, which was the last time the price was below $1,300.
The chart shows that there are bulls still in ETH. As you can see, the 10-day moving average (red) is closing in on a crossover to its 25-day counterpart (blue).
This crossover could lead to ethereum prices rising back towards resistance levels of $1,390.
Traders will be watching the RSI to get guidance. The index is currently just marginally higher than the floor of 41.30.
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