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.
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.
Ethereum bulls will likely be
watching the 0.236% Fibonacci level as a potential target for the next
significant rally in prices.
source link : https://news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-falls-to-5-month-low/
