Bitcoin, Ethereum Technical Analysis: BTC Falls Below $28,000 as Losses Intensify
Bitcoin’s downturn continued on Friday, as prices fell for a third consecutive session, leading to a move below $28,000. Market sentiment has shifted in recent days, as traders began taking profits from last week’s high. Ethereum was also lower, and is now trading around the $1,900 region.
Bitcoin
Bitcoin (BTC) moved lower for a third consecutive session on Friday, as prices slipped below the $28,000 mark.
Following a high of $28,906.25 on Thursday, BTC/USD dropped to an intraday low of $27,855.96 earlier in the day.
As a result of this move, bitcoin fell to its weakest point since April 9, which is the last time price hit a floor of $27,800.
Since nearing this point, BTC bulls have reentered the market, and have pushed price back above $28,000.
One of the catalysts for today’s drop came as the 14-day relative strength index (RSI) fell to a floor of its own at 46.00.
The index has marginally risen from this low, and is tracking at 46.35 at the time of writing.
Ethereum
In addition to BTC, ethereum (ETH) also edged lower, with price nearing a breakout below the $1,900 mark.
Two days after hitting a peak at $2,105, ETH/USD dropped to a low of $1,904.42 earlier in today’s session.
This decline has resulted in the world’s second largest cryptocurrency now trading at its lowest level in eight-days.
Overall, ethereum is trading nearly 10% lower than at the same time last week, when it rose above $2,000 for the first time since last May.
The RSI has also significantly dropped, with the index breaking out of a floor at the 53.00 level, and it is now at a reading of 49.46.
Should momentum continue to fall, bears will likely be targeting a point of support at 44.50.
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Is this recent downturn a result of profit taking? Leave your thoughts in the comments below.
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Author: Eliman Dambell