Bitcoin, Ethereum Technical Analysis: BTC Under $20,000 as ETH Sinks Below $1,400 on Friday
Bitcoin fell below the $20,000 level for the first time since January, as markets continued to react to the liquidation of Silvergate Bank. This comes ahead of a pivotal U.S. nonfarm payrolls report, which could decide how aggressive the Federal Reserve acts in its upcoming meeting. Ethereum moved under $1,400 in today’s session.
Bitcoin (BTC) fell for a fifth straight session on Thursday, as markets continued to react to the Silvergate Bank liquidation.
The bank confirmed that it will be winding down its operations, leading U.S. Senator Elizabeth Warren to blame crypto as a whole.
As such, less than 24 hours after hitting a hit at $21,796.12, BTC/USD fell to an intraday low of $19,669.92 earlier today.
The plunge in price pushed bitcoin to its weakest point since January 13, when it bottomed out at $18,714.
Another catalyst of the sell-off was the 14-day relative strength index (RSI), which fell below a key floor at the 32.00 mark.
At the time of writing, the index is tracking at 26.11, which is deep in oversold territory, and the lowest reading in price strength since November 9.
Ethereum (ETH) was also significantly lower in Friday’s session, with market volatility also higher due to this afternoon’s nonfarm payrolls report.
It is expected that 205,000 jobs were added to the U.S. economy last month, down from January’s 517,000 total.
The decline could act as an overall positive, as the Federal Reserve could hike rates less aggressively depending on the result.
ETH/USD fell to a low of $1,378.53 earlier in the session, which comes a day after trading at a peak of $1,543.69.
Overall, ETH is now down by nearly 10% in the last week, with today’s decline sending the price to its weakest point since mid-January.
The RSI is now tracking at 28.30 as a result of this sell-off, which is its weakest point since last June.
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Will a weak nonfarm payrolls number help boost crypto prices? Leave your thoughts in the comments below.