Bitcoin fell lower on Friday, as the token slipped below a key resistance level during today’s session. Following a mini rally in price this week, bitcoin bears returned to action, as volatility in the market increased. Ethereum was also lower, falling back below $1,700.
Bitcoin, Ethereum Technical Analysis: BTC, ETH Drop as Key Resistance Levels Hold
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Bitcoin
Following a mini rally this week, bitcoin ( BTC), was back in the red on Friday, as the token slipped below a key resistance point.
The world’s largest cryptocurrency fell to an intraday low of $21,171.79, which is nearly $600 lower than Thursday’s high at $21,744.87.
Today’s decline comes as market sentiment once again shifted to bearish territory, following a breakout attempt at the $21,600 price ceiling.
Although BTC/USD did marginally climb beyond that point, bulls opted not to maintain earlier positions, choosing to secure gains instead.
This was a signal to bears, who reentered the market, and now look set to send bitcoin closer to a floor at $20,800.
As of writing, there is slight hope that today’s sell-off will ease, and this comes as the 14-day relative strength index ( RSI) has hit a support level of 44.80.
Should this hold, then we could see BTC rally during the upcoming weekend.
Ethereum
Ethereum ( ETH) was also trading lower on Friday, as the token dropped back below $1,700, as sentiment surrounding The Merge event marginally faded.
So far today, ETH/USD has declined to a low of $1,628.17, which is roughly $90 below its high of $1,718.18 on Thursday.
Like with bitcoin, Friday’s move comes as ethereum bulls failed to sustain a breakout of a key price ceiling.
Looking at the chart, the ceiling was the $1,705 point, however bearish traders now appear to be targeting a support of $1,550.
The 10-day (red) moving average has now extended its downward trend versus its 25-day (blue) counterpart, with the RSI also weakening.
Currently, the index is tracking at 45.58, however it seems to be heading towards a floor at 42.30, which will likely be enough to take ETH back below $1,600.
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How low do you expect ethereum to fall this weekend? Leave your thoughts in the comments below.
