May 19, 2022

MotleyBloggers

News from the world of bitcoin

Bitcoin, Ethereum Technical Analysis: BTC Drops to 2-Week Low Below $40,000

Losses in cryptocurrency markets extended on Friday, with bitcoin falling to multi-week lows in the process. Ethereum was also lower during the session, whilst the global crypto market cap was down 3.70% as of writing.

Bitcoin

Bitcoin was down for a third consecutive session, as recent bearish pressure continued to intensify on the world’s largest cryptocurrency.

Following a high of $43,327.99 on Thursday, BTC/USD fell below $40,000 during today’s session, and is down nearly 7% as of writing.

The move saw BTC hit an intraday low of $39,633 (as of writing), sending prices below its recent support of $41,765.

This drop in price comes as market uncertainty continues to heighten, with the situation between Russia and Ukraine likely one of the main culprits.

Traders, which typically see BTC as a high-risk asset, have moved to gold instead, leading to prices of the “safe haven” currency climbing to multi-month highs.

BTC/USD however seems to have found an interim floor after today’s selloff, with the 14-day RSI also consolidating, after earlier weakness.

Ethereum

After barely remaining above the $3,000 level yesterday, the rug was truly pulled from the feet of ETH traders on Friday.

ETH/USD fell to an intraday low of $2,824.08 during today’s session, which is its lowest level since February 4.

The move came as prices of the world’s second largest cryptocurrency fell below support at $2,840. The asset, however, has since regained some of its footing.

In addition to this, the 14-day RSI has moved further into oversold territory after this week’s declines, which has seen ETH lose 8% of its value.

As of writing, should the current support be broken, bears will likely look to push this toward the $2,500 point.

Will this bearish pressure extend into the weekend? Leave your thoughts in the comments below.