Bitcoin fell below $19,000 on Wednesday, as the token failed to break out of a key resistance level during yesterday’s session. As a result of today’s sell-off, prices are now at their lowest point since June. Ethereum also declined, as bullish sentiment surrounding The Merge faded.
Bitcoin, Ethereum Technical Analysis: BTC Slips Below $19,000 Following Yesterday’s Failed Breakout
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Bitcoin
Bitcoin ( BTC) fell to its lowest level since June earlier in today’s session, a day after the token failed to break out of a key resistance point.
Following a peak of $20,155.27 on Tuesday, BTC/USD dropped to an intraday low of $18,644.47 on hump day.
The move saw bitcoin fall to its lowest point since June 18, and came as prices declined as BTC neared its ceiling of $20,230.
Looking at the chart, the drop saw BTC move from that ceiling, to eventually break out of a support level of $19,500.
As of writing, the token is now trading close to a lower floor at $18,600, which is an area where bulls have so far attempted to uphold support.
The relative strength index ( RSI) is currently tracking below 30, and is near its weakest point in nearly four months.
Ethereum
A day after surging, ethereum ( ETH) was back in the red, as bullish sentiment surrounding The Merge event faded.
Yesterday saw ETH/USD surge to a high of $1,670.71, following a tweet from co-founder Vitalik Buterin.
Buterin confirmed that “The merge is still expected to happen around Sep 13-15”, adding: “What’s happening today is the Bellatrix hard fork, which *prepares* the chain for the merge”.
Bulls used this news as a signal to enter, however, it now seems that some have liquidated earlier positions, opting rather to secure profits.
As of writing, ETH has fallen to a low of $1,500.01 on Wednesday, breaking out of its floor of $1,550 in the process.
Momentum now looks to be bearish, with some suggesting that prices could fall to a support level of $1,430 in coming days.
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Will we see prices of ethereum fall despite the upcoming merge? Leave your thoughts in the comments below.
