• Bitcoin fell to a seven-day low on Monday, as bullish sentiment faded in cryptocurrency markets.
• Ethereum also declined but remained above $1,600.
• The 14-day relative strength index (RSI) for both Bitcoin and Ethereum dropped to their lowest readings in nearly a month.
Bitcoin Hits 1-Week Low
Bitcoin (BTC) started the week falling to a seven-day low, as market sentiment began to shift downwards. BTC/USD has now fallen lower for five straight sessions, with today’s decline taking prices to a bottom of $22,734.48. This drop sees bitcoin hit its weakest point since January 30th when prices were trading at a floor of $22,500. The 14-day relative strength index (RSI) for Bitcoin broke out of a floor at 68.00 and is now tracking at 61.15; the lowest reading for the index in nearly a month, following an extended streak in overbought territory.
Ethereum Below $1,600 Level
Ethereum (ETH) also moved lower on Monday, however prices were able to remain above the $1,600 level despite the decline. Following a high of $1,665.26 on Sunday, ETH/USD dropped by as much as 2% in today’s session and hit a low of $1,616.30 in the process. As a result of this sell-off ethereum moved closer to its recent support level at $1,600; however bulls have so far rejected this collision and pushed ETH back up towards its opening price today of around 1$630 per coin..
What Caused This Reversal?
The recent declines are being attributed to Friday’s stronger than expected U.S nonfarm payrolls report which has made some question the Federal Reserve’s view that inflation has peaked and could lead them away from their current dovish stance towards monetary policy tightening which would be bearish for cryptocurrencies overall due to their lack of intrinsic value compared with fiat currencies such as USD or EUR etc..
The RSI for Ethereum appears to have found its own floor at 58 providing some support for bulls who may try another move back up towards 1$700 as we progress through this week provided this RSI support level holds firm..
Cryptocurrency markets have seen mixed results today with Bitcoin heading lower whilst Ethereum remains relatively stable above 1$600 . Recent economic data from the US has caused some uncertainty regarding central banks policies leading many investors away from riskier assets such as crypto . Technical analysis shows that both coins have dropped below certain key levels indicating that further losses may be ahead if these levels are breached .