Bitcoin, Ethereum Technical Analysis: BTC at 2-Year Low, ETH Down 20% as FTX Turmoil Leads to Crypto Bloodbath
Bitcoin plunged to a two-year low on Wednesday, as the FTX token sell-off continued to weigh on cryptocurrency markets. After an initial 30% slide, FTX token fell by as much as 80%, as Binance confirmed its intention to...
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Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Bitcoin plunged to a two-year low on Wednesday, as the FTX token sell-off continued to weigh on cryptocurrency markets. After an initial 30% slide, FTX token fell by as much as 80%, as Binance confirmed its intention to absorb the failing exchange. Ethereum was also lower, dropping below $1,200.
Bitcoin
Bitcoin (BTC) fell to its lowest level in two years on Wednesday, as markets continued to react to the volatility caused by the FTX/Binance affair.
The world’s largest cryptocurrency plunged to a low of $17,402.55 earlier in today’s session, less than a day after trading at a high of $20,582.24.
This move, which saw prices plummet by as much as 10%, took BTC/USD to its lowest level since November 2020.
As can be seen from the chart, the decline intensified when the token fell below its long-term support level of $19,000.
In addition to this, the 14-day relative strength index (RSI) has also slipped to a floor of its own, which is near the 29.75 level.
BTC has somewhat rebounded from earlier lows, with the token now trading at $17,718.95, with some bulls hoping for a support around $17,900 to be established.
In addition to BTC, ethereum (ETH) also fell considerably in today’s session, as prices dropped below $1,200 in the process.
Following a high of $1,564.55 on Tuesday, ETH/USD was down by as much as 20%, hitting a low of $1,157.23 .
This drop saw ETH move to its lowest level since July 14, when the token was trading slightly above $1,000.
Like with bitcoin above, the RSI on this ethereum chart is now tracking at 33.00, which is marginally above a floor of 32.50.
This reading, which is the weakest reading in the last five months, means that prices are now in oversold territory, which long-term bulls believe means that a bottom has been hit.
However, the 10-day (red) moving average continues to fall downward, and should this trend continue, it is likely that ETH will move below $1,000.
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Have we reached a bottom, or will this week’s sell-off intensify? Leave your thoughts in the comments below.
Why this matters
This ethereum story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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