by • Bitcoin and Ethereum both dropped below key support levels on Wednesday, with BTC/USD falling below $23,000 and ETH/USD slipping to $1,530.80.
• The bearish move occurred as the 14-day relative strength index (RSI) for both cryptocurrencies fell to their lowest levels since last Thursday.
• Ethereum appears to be headed towards a lower level of support at $1,500, while Bitcoin has somewhat rebounded and is currently trading at $22,614.62.
Cryptocurrency markets were hit by a red wave on Wednesday, as Bitcoin and Ethereum both dropped below key support levels. Bitcoin (BTC/USD) fell below the $23,000 level, hitting an intraday low of $22,406.08, while Ethereum (ETH/USD) slipped to a bottom of $1,530.80.
The bearish move occurred as the 14-day relative strength index (RSI) for both cryptocurrencies fell to their lowest levels since last Thursday. Bitcoin’s RSI fell to 79.93, while Ethereum’s dropped to 61.07. This suggests that prices had become overbought, and thus bears reentered the market to bring prices back down.
Since its earlier breakout, Bitcoin has somewhat rebounded, and is currently trading at $22,614.62. Ethereum, on the other hand, appears to be heading towards a lower level of support at $1,500. This could be a key buying opportunity for investors, as Ethereum has been in a strong uptrend since October 2020.
Overall, the cryptocurrency market appears to be in a state of flux. While Bitcoin and Ethereum have dropped below key support points, the fact that they have remained relatively stable suggests that bulls could soon return to the market. As such, investors should keep a close eye on the market and exercise caution when trading in the coming days.
