Bitcoin fell to a seven-day low earlier in the week as recent bullish momentum in cryptocurrency markets faded. Friday’s better-than-expected US jobs report has challenged the Federal Reserve’s view that inflation has peaked. Ethereum also declined on Monday but remained above $1,600.
Bitcoin
Bitcoin (BTC) fell to a seven-day low earlier in the week as market sentiment began to shift lower.
BTC/USD is now down for five straight sessions, with today’s decline taking prices to a low of $22,734.48.
This drop is leading Bitcoin to reach its weakest point since Jan. 30, when prices traded at a floor of $22,500.
BTC/USD daily chart
Looking at the chart, the world’s largest cryptocurrency appears to be headed back towards this support point.
BTC’s recent declines have come as the 14-day Relative Strength Index (RSI) broke a bottom at 68.00. It tracks now at 61.15.
This is the index’s lowest reading in almost a month and comes after a prolonged period in the overbought territory.
ether
Ethereum (ETH) also moved lower on Monday, however, prices managed to stay above the $1,600 level despite the decline.
After hitting a high of $1,665.26 on Sunday, ETH/USD is down as much as 2% in today’s session, hitting a low of $1,616.30.
As a result of this sell-off, Ethereum approached its recent support level at $1,600. However, cops have so far denied a collision.
ETH/USD daily chart
This was supported by the RSI, which found its own bottom at 58.00, allowing for a soft landing for previous bulls.
ETH has since recovered from previous losses and is trading at $1,630.55 at the time of writing.
If this 68.00 RSI floor holds, Ethereum bulls could attempt another move towards $1,700 later in the week.
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What’s behind today’s reversal in cryptocurrency prices? Leave your thoughts in the comments below.
Elijah Dambell
Eliman brings an eclectic viewpoint to market analysis. Previously he was Brokerage Director and Online Trading Instructor. He currently acts as a commentator for various asset classes including crypto, stocks and forex while also being a startup founder.
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