Bitcoin, Ethereum Technical Analysis: BTC Under $27,000, ETH Hits 1-Month Low Ahead of US Inflation Report
Bitcoin fell below the $27,000 level on Thursday, ahead of the upcoming inflation report in the United States. Consumer prices are expected to have risen by 3.6% in September, down 0.1% from the month prior. Ethereum plunged to a multi-week low.
Bitcoin
Bitcoin (BTC) fell for a fifth consecutive day, as markets prepared for the release of last month’s U.S. consumer price index (CPI)
BTC/USD dropped to a low of $26,561.10 earlier in the day, which comes less than 24 hours after trading at a high of $27,258.45.
Thursday’s sell-off has seen the world’s largest cryptocurrency remain near its lowest point since the end of September.
Looking at the chart, the move pushed the relative strength index (RSI) to a support point at the 44.00 level.
Price strength has since marginally rebounded, and at the time of writing, is tracking at 45.28.
This floor may serve as a buffer ahead of the inflation report, which could then trigger an increase in volatility.
Ethereum
Ethereum (ETH) also experienced a plunge in price, with the cryptocurrency falling to a multi-week low.
Following a high of $1,576.40 on Wednesday, ETH/USD dropped to a bottom at $1,538.26 earlier in the session.
As a result, ethereum has now fallen to its weakest point since September 11, when the price traded below its $1,540 support point.
The downtrend comes following a recent crossover of the 10-day (red) moving average and its 25-day (blue) counterpart.
Due to this bearish momentum, the RSI has fallen to a current reading of 36.88, which suggests volumes are marginally oversold.
This could prompt bulls to consider buying the dip, depending on today’s inflation report.
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Will US inflation fall below 3.6%? Leave your thoughts in the comments below.
