Bitcoin, Ethereum Technical Analysis: BTC, ETH Extend Declines Following FTX Saga, Markets Now Look Towards US Inflation Report
Cryptocurrencies continued to crash on Thursday, as market sentiment surrounding the FTX saga remained on the minds of traders. Bitcoin fell below $16,000 late on Wednesday, with prices remaining close to two-year lows today. Ethereum slipped below $1,100, with attention now focused on today’s U.S. inflation report.
Bitcoin
Bitcoin (BTC) continued to trade close to a two-year low on Thursday, as market sentiment remained bearish following the FTX collapse.
This, in addition to today’s U.S. inflation report, led to an increased level of bearish pressure, which sent the token below $16,000.
BTC/USD fell to a low of $15,682.69 late in yesterday’s session, with the price now over 20% lower for the week.
This latest decline saw the token fall to its lowest level since November 2020, when global Covid-19 lockdowns were still in place.
Downward sentiment intensified as Binance opted to walk away from its proposed bid to acquire FTX, following due diligence.
As of writing, BTC has marginally rebounded, and is currently trading at $16,497.17, with the 14-day relative strength index (RSI) tracking at 28.64.
Ethereum
Ethereum (ETH) was also entangled in the red wave, with prices of the token falling below $1,100 in the process.
Last night saw ETH/USD fall to $1,083.29, pushing prices of the token as much as 20% lower, for the day.
As a result of this decline, the world’s second largest crypto token moved to its lowest point since July 14.
Referring to the FTX/Alameda saga, Ethereum co-founder Vitalik Buterin stated that, “If you make a coin, don’t keep the supply for yourself and “intend” to give it later. Just issue half straight to GiveWell or OpenPhil or whoever. Don’t insert your own friggin fund in the middle.”
ETH has since rebounded from earlier lows and is currently trading at $1,214.42 ahead of today’s inflation report, which is expected to come in at 8%.
However, the 10-day (red) moving average continues to close in on its 25-day (blue) counterpart, which could trigger further declines should they cross.
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