Less than 24 hours after US President Biden’s executive order, cryptocurrency markets were back in the red as global market capitalization fell more than 5%. Bitcoin was once again trading below $40,000, with ETH hovering slightly above $2,500.
Bitcoin
As the smoke clears after yesterday’s executive order, crypto traders seem to accept what this announcement could mean for the long-term space.
The world’s largest cryptocurrency is currently down more than 7% on Thursday, wiping out all of yesterday’s gains.
After Wednesday’s high of $42,465.67, BTC/USD has so far fallen to an intraday low of $38,832.94 earlier in the session.
This came as the 14-day RSI also fell back below its support at 47.4, after hitting 54.6 only yesterday.
Price strength volatility shows the degree of market uncertainty that currently exists, as traders seem afraid to hold onto gains and instead accept profits.
As the momentum shifts again, many expect further price consolidation, which could be confirmed if BTC hits its lows of $37,600 in the upcoming sessions.
Ethereum
Wednesday’s gains in Ethereum were also wiped out in Thursday’s session, with the world’s second largest cryptocurrency trading down 5.17% today.
At the time of writing, ETH/USD was trading at $2,593.45, and this comes after hitting $2,756.06 less than 24 hours ago.
ETH has so far fallen to an intraday low of $2,566.19 in Thursday’s session, which is slightly above its long-term low of $2,550.
This drop in support will likely prevent the bears from sustaining recent pressure in hopes of a break below the $2,400 level.
If that happens, we could see the RSI move from its current position of 48 to its own low of 42.
Is it inevitable that we will see further downward moves in ETH? Leave your thoughts in the comments below.
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