Bitcoin dropped below the $29,000 level to start the month of August, as the greenback continued to strengthen versus other G7 currencies. The U.S. dollar rose ahead of this afternoon’s manufacturing Purchasing Managers Index (PMI), which is expected to climb to a reading of 46.8. Ethereum fell to a five-week low.
Bitcoin, Ethereum Technical Analysis: BTC Starts August Trading Below $29,000
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Bitcoin
Bitcoin ( BTC) slipped below the $29,000 level on Tuesday, as a result of a strengthening U.S. dollar.
Following a high of $29,463.87 to start the week, BTC/USD dropped to a bottom of $28,801.28 earlier in today’s session.
This is the lowest point that bitcoin has hit since June 21, when the price was at a low of $28,271.
Looking at the chart, today’s move took place following a breakout of the 41.00 level on the relative strength index ( RSI).
As of writing, the index is tracking at 39.29, with the next visible point of support at the 35.00 zone.
Should it reach this level, there is a good chance that BTC will be below $28,300.
Ethereum
Ethereum ( ETH) was also in the red to start the month, as the cryptocurrency dropped to a multi-week low.
ETH/USD retreated to an intraday low of $1,818.41 on Tuesday, after Monday’s peak at the $1,872.17 level.
As a result of this decline, ethereum fell for a third straight session, hitting its weakest point since June 28.
Similar to bitcoin, today’s sell-off came as the RSI fell below a floor at 43.00. It is now at a reading of 41.96.
Overall, it appears that bears are targeting the $1,795 level, which was last hit on June 21.
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