Bitcoin, Ethereum Technical Analysis: BTC Falls to $20,000 Range, as Sell-Off Extends
Bitcoin declined for an eighth consecutive session on Tuesday, as the crash in crypto markets continued. BTC fell to the $20,000 range for the first time since December 2020, whilst ETH hit $1,000, also recording a multi-year low.
The world’s largest crypto token fell to an intraday low of $20,950.82 in today’s session, following yesterday’s low of $23,607.69.
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This latest decline comes as traders prepare for tomorrow’s FOMC meeting, where some expect the Federal Reserve to increase interest rates.
As U.S. inflation continues to peak, many now see it as a necessity for the Fed to make more policy changes, in order to combat rising consumer prices.
From a technical standpoint, the 14-day RSI is now tracking at its lowest point in over five years, with a reading of 23.77.
Many believe that we have yet to find a price floor following the recent declines in value, with some expecting prices to potentially land near $19,000.
Following a high of $1,269.76 to start the week, ETH/USD fell to an intraday bottom of $1,094.70 earlier in the day.
This drop saw ETH land at its lowest point since January 2021, when prices rose for a bottom of $748.
As a result of this latest drop in price, ETH broke out of its support at $1,275, and now looks set to find support at around $800.
Bulls will likely try to prevent this from happening, and will be helped by the fact that the 14-day RSI is deeply oversold, with not much bearish volume left.
Relative strength is currently tracking at 21, which is its lowest reading since March 2020, during the first peak of the coronavirus pandemic.