Bitcoin started the week trading in the red, as markets prepared for an important week of U.S. economic events. On Wednesday, the Federal Reserve is expected to increase rates by 25 basis points, with nonfarm payrolls for April being released this coming Friday. Ethereum was also lower in today’s session.
Bitcoin (BTC) continued to trade lower on Monday, as markets remained in consolidation ahead of a pivotal week of economic events.
Following a high of $29,952.03 on Sunday, BTC/USD slipped to an intraday low of $28,360.50 earlier today.
This move saw bitcoin briefly fall below a key support point at $28,500, hitting its lowest point since April 27 in the process.
Overall, bitcoin remains nearly 4% higher than at the same point last week, when prices were close to the $27,000 mark.
As a result of today’s sell-off, the relative strength index (RSI) has dropped to a floor of its own at 50.00.
The index is now tracking at 50.09, with BTC rebounding from its earlier low, and currently trading at $28,591.66.
In addition to BTC, ethereum (ETH) was also in the red, as prices plunged for a second consecutive session.
ETH/USD dropped to a bottom at $1,829.41 earlier in the day, less than 24 hours after trading at a peak of $1,938.42.
Similar to BTC, today’s slippage sent ethereum below its own point of support at the $1,830 level.
ETH has since rebounded from this floor, as bulls opted to buy the dip, rather than continuing to flee positions.
This was helped by the fact that the RSI here also collided with a support zone at 45.00, and it continues to track beyond this point.
Bulls will likely be targeting reentry above $1,900 in upcoming days.
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Will ethereum climb back above $2,000 following this week’s events? Leave your thoughts in the comments below.
Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
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