Bitcoin, Ethereum Technical Analysis: BTC Falls to 5-Month Low
The selloff in cryptocurrencies continued to start the week, with bitcoin falling to its lowest level since July. Ethereum was also trading in the red, hitting multi-month lows in the process. This comes as the overall global market cap in cryptos was down close to 9% at the time of writing. Bitcoin
Bitcoin (BTC), which has been the main focus of the recent decline in crypto prices, was trading 3% lower on Monday (at the time of writing), and almost 20% down from its position at the same time last week.
As of writing, BTC/USD hit an intraday low of $33,184.06 during today’s session, which is its lowest level since July 23rd last year. Today’s move comes as prices broke below the recent support level of $40,135 last Thursday and extended throughout the weekend.
Looking at the chart below, BTC appears to have found a new floor, reaching $34,200 on a daily chart. Although prices have moved beyond this interim support, some bulls argue that this could be a false breakout, pointing to the rally at the end of July as evidence for a potential reversal at this price range.
The RSI also shows that price strength is below 30 (currently tracking at 22), which typically signifies a market being oversold. However, with the real bullish momentum appearing to come in above 30, we may be in for some further consolidation today. BTCUSD – Daily Chart Ethereum
Ethereum (ETH) was down more than bitcoin to start the week, as the world’s second-largest cryptocurrency was trading over 8% lower during the session. ETH/USD fell to $2,172.30 on Monday, its lowest level since July 27th.
Similar to BTC, the chart below suggests that prices are oversold, however, the 10-day EMA also shows that there could be yet more bearish momentum, with a descending triangle highlighting a potential continuation of the current trend. ETH/USD – Daily Chart
Ethereum bulls will likely be watching the 0.236% Fibonacci level as a potential target for the next significant rally in prices. Tags in this story Bitcoin (BTC), BTC, BTC/USD, EMA, ETH, ETH/USD, Ethereum, Fibonacci, Market Update, Markets, Prices, resistance, RSI, support
Should traders be careful of trying to catch what appears to be a falling knife? Let us know what you think about this subject in the comments section below. Eliman Dambell
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX. UBS Warns of Crypto Winter Amid Expectation of Fed Rate Hikes and Regulation MARKETS AND PRICES | 21 hours ago Bitcoin Price Slips Below $36K, BTC Dominance Increases, Billions Leave Crypto Economy MARKETS AND PRICES | 2 days ago
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