Bitcoin, Ethereum Technical Analysis: BTC Falls Below $45,000 Ahead of FOMC Minutes, ETH Extends Recent Losses
Bitcoin fell below the $45,000 level on Wednesday, as the selloff in crypto markets extended, following strong gains last week. ETH was also down in the session, slipping to a five-day low in the process. Overall, the global crypto market cap fell by 4% as of writing.
The minutes typically provide traders an inside look into the thinking of the Fed, when it comes to policy decisions.
As of writing, BTC/USD fell to an intraday low of $44,669.25 on hump-day, which is nearly 5% below yesterday’s high.
BTC peaked around $47,200 on Tuesday, however this upwards momentum eased, leading to the price falling below support at $45,130.
Looking at the chart, support on the 14-day Relative Strength Index (RSI) was also broken, as the 57.80 level failed to hold in today’s session.
Price strength is now tracking at 53.60 — which is its weakest point since March 21 — and looks to be heading for a floor of 51.43.
ETH tailed off in today’s session, as the world’s second largest cryptocurrency fell to its lowest level in five days.
Following several days of trading above $3,500, ETH/USD fell to an intraday low of $3,291.42 on Wednesday.
The drop comes several days after prices failed to break out of the key resistance level of $3,530, and they now could be heading to support at $3,190.
Looking at the chart, the fall in price coincided with the breakout of the 64.30 floor within the RSI indicator.
This was the first time in over two weeks that price strength has traded below this floor, and it has now fallen to a 57.9 in the process.
Although the long-term support is at $3,190, there is some resistance at the current level of $3,300, and with prices fairly reluctant to fully move beyond this point, bulls will likely maintain existing positions, instead of giving way to a bearish onslaught.
Will today’s dip in ETH only drive in more bulls looking to buy the dip following its recent upwards rally? Leave your thoughts in the comments below.