Bitcoin fell for the eighth consecutive session on Tuesday, as the crypto markets continued to crash. BTC fell in the $20,000 range for the first time since December 2020, while ETH plunged as low as $1,000, also recording a multi-year low.
Bitcoin
BTC was trading lower for the eighth day in a row, with Monday’s drop sending the price to its lowest point since December 2020.
The world’s largest crypto token fell to a low of $20,950.82 in today’s session after hitting a low of $23,607.69.
This latest drop comes as traders prepare for tomorrow’s FOMC meeting, where some expect the Federal Reserve to hike interest rates.
As US inflation continues to peak, many now see it as a need for the Fed to make more policy changes to deal with rising consumer prices.
From a technical perspective, the 14-day RSI is now tracking its lowest point in five years, with a reading of 23.77.
Many believe that we have not yet found a price floor after the recent drop in price, with some potential prices expected near $19,000.
Ethereum
Ethereum fell below $1,100 on Tuesday as the world’s second-largest cryptocurrency fell in price.
After hitting an early week high of $1,269.76, 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 the price surged to a low of $748.
As a result of this latest drop in price, ETH broke its support at $1,275 and is now ready to find support around $800.
The bulls will likely try to prevent this from happening, and this 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 21, which is the lowest reading since March 2020 during the first peak of the coronavirus pandemic.
Will ETH fall below $1,000 this coming week? Give your thoughts in the comment below.
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