Cryptocurrency selling continued to start the week, with bitcoin falling to its lowest level since July. Ethereum was also trading in the red, hitting multi-month lows in the process. This comes as the overall global crypto market capitalization was down almost 9% at the time of writing.
Bitcoin (BTC), which has been at the center of recent crypto price declines, was trading down 3% on Monday (at the time of writing), and down nearly 20% from its position at the same time last week.
At the time of writing, BTC/USD hit an intraday low of $33,184.06 during today’s session, which is its lowest level since July 23 last year. Today’s move comes as prices fell below the recent $40,135 support level last Thursday and extended through the weekend.
Looking at the chart below, BTC appears to have found a new low, hitting $34,200 on a daily chart. Although prices have broken above this tentative support, some bulls argue that it could be a false breakout, pointing to the late July rally as evidence of a potential reversal within this price range.
The RSI also shows price strength below 30 (currently at 22), which usually means a market is oversold. However, with the real bullish momentum appearing to lie above 30, we could see further consolidation today.
Ethereum (ETH) fell more than bitcoin to start the week as the world’s second-largest cryptocurrency traded more than 8% lower during the session. ETH/USD fell to $2,172.30 on Monday, its lowest level since July 27.
Similar to BTC, the chart below suggests that prices are oversold, however, the 10-day EMA also shows that there could be even more bearish momentum, with a descending triangle highlighting a potential continuation of the current trend.
Ethereum bulls will likely be watching the 0.236% Fibonacci level as a potential target for the next big price rally.
Should that traders be careful trying to catch what appears to be a falling knife? Let us know what you think about this topic in the comments section below.
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