Bitcoin, Ethereum Technical Analysis: BTC Falls as Global Economic Slowdown Heightens
Bitcoin was back in the red during Friday’s session, as the token was once again trading below $19,000. The recent decline comes as the global economic slowdown has become more apparent. This week, both the Bank of England and United States Federal Reserve have moved to increase interest rates, with the Bank of Japan also intervening in the currency market. Ethereum was also lower on Friday, falling below $1,300.
Bitcoin (BTC) fell back below $19,000 on Friday, as financial markets continued their sell-off, while the global economy continued to slow down.
BTC/USD was moving closer to a three-month low on Friday, as the token dropped to an intraday low of $18,859.75.
This comes as both the S&P 500 and gold also dropped to recent lows in the past 24 hours, following U.S. Fed rate hike.
Looking at this chart, today’s decline comes as prices slipped below a key price floor of $19,300, with the 14-day relative strength index (RSI) also dropping below a resistance point.
As of writing, the index is tracking at 41.38, which is marginally below a notable ceiling at the 42.00 mark.
Bears now look set to move from this ceiling to a floor of 37.50, and should this occur, BTC will likely be trading below $18,000.
Similar to bitcoin, today’s red wave also collided with ethereum (ETH), which saw its price once again fall below $1,300.
The world’s second largest cryptocurrency dropped to an intraday low of $1,258.71 during today’s session.
This move has seen ETH/USD move closer to a floor of $1,215, which was hit earlier this week for the first time since July.
As seen from the chart, the 10-day (red) moving average has fully crossed with its 25-day (blue) counterpart, which is a sign that further declines could come.
Currently the RSI is tracking at 37.58, which is in oversold territory, and could be a positive for investors hoping that the sell-off slows down.
Overall, ETH has fallen by nearly 12% in the last seven days.
Register your email here to get weekly price analysis updates sent to your inbox:
Could ethereum fall below $1,000 this month? Leave your thoughts in the comments below.