Bitcoin, Ethereum Technical Analysis: BTC Plunges Below $22,000, While ETH Nears 10-Day Low
Bitcoin was significantly lower on Friday, as the token fell by over $1,500 in a 24-hour period. The world’s largest cryptocurrency has been declining all week, however today’s drop engulfed previous losses. Ethereum was also in the red, as the token fell below $1,700 for the first time in almost ten days.
Bitcoin (BTC) fell lower for a seventh consecutive session on Friday, as the token broke out of a key price floor earlier in the day..
On Friday, BTC/USD fell to an intraday low of $21,718.54, which saw the token drop below its recent support point at $22,600.
This move saw the world’s largest cryptocurrency hit its lowest point since July 27, and near a new floor of $21,150 in the process.
As can be seen from the chart, the drop coincided with the 14-day relative strength index (RSI) moving below its own floor at 46.
Currently, the index is tracking at 37.87, which is not only in oversold territory, but the weakest point the RSI has touched in over a month.
Despite already being oversold, it appears that bears are attempting to recapture a floor of 34.95, which will see BTC possibly drop below $21,000.
ETH/USD dropped to a bottom of $1,695.15 earlier in today’s session, as a red wave swept through cryptocurrency markets.
This is the lowest level ETH has traded at since August 10, when prices went on to hit a floor of $1,705.
Today’s move has seen the token move marginally below this support level, whilst the RSI also dropped below a key floor.
As of writing, relative strength on ethereum is tracking at 47, which like bitcoin, is the weakest point since mid-July.
Should this downtrend continue, it is likely that ETH bears will look to take prices to a lower price floor of $1,600.
Register your email here to get weekly price analysis updates sent to your inbox:
What factors are behind this latest sell-off in ethereum? Leave your thoughts in the comments below.
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.