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
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Source: https://news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-falls-to-5-month-low/
