Bitcoin, Ethereum Technical Analysis: BTC Plunges Under $27,000, Hitting 7-Week Low
Bitcoin fell to a seven-week low on May 12, as prices dropped below the $27,000 level in today’s session. Friday’s decline came as a red wave swept through cryptocurrencies, with the market cap down 2.75% as of writing. Ethereum also slipped to its weakest point since March.
Bitcoin (BTC) dropped below the $27,000 level in today’s session, pushing prices to a seven-week low.
Following a high of $27,589.92 on Thursday, BTC/USD slipped to an intraday bottom at $26,166.87.
As a result of this drop, bitcoin fell to its lowest level since March 17, when price was below the $25,000 mark.
Bitcoin chart by TradingView
Overall, this latest sell-off coincided with the 14-day relative strength index (RSI) breaking out of yesterday’s floor of 43.00.
At the time of writing, price strength is tracking at 35.07, which is its lowest point in over two months.
Should momentum continue in this current trajectory, there is a possibility that BTC could move toward $25,000 this weekend.
In addition to BTC, ethereum (ETH) was also in the red on Friday, as bears continued to control market sentiment.
ETH/USD slipped to a low at $1,742.40 on Thursday, following an earlier peak of $1,835.62 the day prior.
Similar to bitcoin, today’s drop in price saw the world’s second largest cryptocurrency hit its lowest point since March.
Ethereum chart by TradingView
A major catalyst to the move was also a breakout on the RSI, which fell out of a support point at the 44.00 zone.
Currently, the index is at a reading of 39.04, which is its weakest level since March 11, when ETH traded below $1,500.
Ultimately, this could be a long-term positive for bulls, who may move to buy the current dip in price.
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What is behind today’s red wave? Leave your thoughts in the comments below.
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