Bitcoin, Ethereum Technical Analysis: BTC Below $20,000 as Markets React to Increasing Dollar Strength
BTC fell below $20,000 on Tuesday, as volatility in financial markets continued to peak, due to current levels of inflation. The euro fell to its lowest level against the U.S. dollar in over twenty years, and this dollar strength seems to be impacting crypto prices. ETH also slipped, falling below $1,100.
Bitcoin dropped below $20,000 during Tuesday’s trading session, as markets responded to recent bearish pressure.
The world’s largest crypto token fell to a low of $19,613.95 earlier today, which is roughly $1,000 lower than yesterday’s peak at $20,664.82.
This most recent drop sees BTC/USD trading lower for a fourth straight session, as traders look to be targeting a key price floor.
Looking at the chart, this support level appears to be at the $18,845 level, which could be hit, should relative strength continue to subside.
Today’s decline in price pushed the RSI below its own floor at 37.40, and it looks to be heading for a lower point at 31.
Should this come to fruition, not only could we see BTC trading in the region of $18,000, but it could possibly fall below this point.
ETH also extended a recent losing streak, with prices today falling to their lowest point in over a week.
As of writing, ETH/USD fell to a low of $1,056.05 on Tuesday, which is its weakest level since July 4, during the U.S. Independence Day celebrations.
This latest decline has seen ethereum now lose over $100 in value over the past 24-hours, sending prices near a long-term support level in the process.
As seen on the chart, the floor at $1,050 has been in place over the past month, and is one of the last remaining defenses preventing prices from falling below $1,000.
Similar to bitcoin, we have now seen the RSI on the ETH chart slip below a support point, which could indicate upcoming downwards pressure.
Price strength now sits at a new floor of 35.85, which is already oversold. However, should this floor give way, we may see prices fall further.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.