Monday, October 10, 2022

Bitcoin, Ethereum Technical Analysis: BTC, ETH Fall to 1-Week Lows, as Markets Prepare for Big Week of Data

Bitcoin was trading near a key support point on Monday as markets prepared for a big week of economic data. The headline release will be Wednesday’s U.S. inflation report, which is forecasted to come in at 8.1% for September, which is lower than August’s rate of 8.3%. Ethereum was also in the red, as the token slipped to a one-week low to start the week.

Bitcoin

Bitcoin started the week trading at a seven-day low, as markets prepared for a big week of economic data.

BTC/USD slipped to a bottom of $19,162.31 on Monday, which saw prices drop below a key support point of $19,300.

Since hitting this floor, bulls have since reentered, pushing prices back above the aforementioned support.

Looking at the chart, today’s drop in price came as the 14-day relative strength index (RSI), fell to a bottom of its own.

As of writing, the index is tracking 45.47, which is marginally above a support of 45.00, however, bulls have thus far rejected a breakout attempt.

Should this continue to be the case, we could see bitcoin bounce from this point, and head back towards the $20,000 mark.

Ethereum

In addition to bitcoin, ethereum (ETH) was also tracking near a one-week low on Monday, with prices also nearing a breakout.

The world’s second largest cryptocurrency dropped to a low of $1,300.00 to start the week, however bears failed to take the token below this point.

Despite the failed breakout, ETH/USD is currently still trading at its lowest point since October 3, which is the last time price was under $1,300.

As seen from the chart, it appears that bulls are still present in ETH, with the 10-day (red) moving average closing in on a crossover with its 25-day (blue) counterpart.

Should this crossover take place, we could see the price of ethereum surge back toward a resistance of $1,390.

Traders will likely be paying attention to the RSI for guidance, with the index currently hovering marginally above a floor of 41.30.

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Will crypto prices consolidate ahead of Wednesday’s inflation report? Leave your thoughts in the comments below.



via Eliman Dambell

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