After strong gains last week, bitcoin fell below the $45,000 level on Wednesday, with an extension of selloff in the crypto markets. ETH was also down in the session, slipping to a five-day low in the process. Overall, the global crypto market cap fell 4% as of writing.
Bitcoin
BTC fell below $45,000 during Wednesday’s session as markets await the release of the latest FOMC meeting minutes.
When it comes to policy decisions, the minutes generally provide traders with an inside look into the Fed’s thinking.
At the time of writing, BTC/USD fell on the hump to an intraday low of $44,669.25, down about 5% from yesterday’s high.
BTC peaked around $47,200 on Tuesday, although it lost momentum, pushing the price below the $45,130 support level.
Looking at the chart, support on the 14-day Relative Strength Index (RSI) was also broken as it failed to sustain the level of 57.80 in today’s session.
Price strength is now tracking at 53.60 – its weakest point since March 21 – and is moving towards a floor of 51.43.
Ethereum
ETH closed today’s session as the world’s second largest cryptocurrency fell to its lowest level in five days.
After several days of trading above $3,500, ETH/USD fell to a low of $3,291.42 on Wednesday.
The decline in price comes days after it failed to break the key $3,530 resistance area and it may now move towards the $3,190 support.
Looking at the chart, the price declined with a breakout of the 64.30 floor within the RSI indicator.
This was the first time in more than two weeks that the price firm was trading below this floor, and has now dropped to 57.9 in the process.
Although long-term support is at $3,190, there is some resistance at the current level of $3,300, and the bulls tend to hold on to the current position rather than give way to a bearish attack, with the price being quite reluctant to move fully beyond this point. Will keep
Will today’s drop in ETH only prompt more bulls to buy the downside after the recent upward rally? Give your thoughts in the comment below.
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