Bitcoin dropped below the $25,000 mark late on Monday, as bearish sentiment intensified to start the week. The cryptocurrency has since rebounded, and as of writing is hovering marginally above the $26,000 level. Ethereum also declined, hitting its lowest level since March.
Bitcoin
Bitcoin fell to a three-month low towards the end of Monday’s session, as bears pushed the price below the $25,000 level.
BTC/USD plunged to a bottom at $24,930.30, to start the week, which was its lowest point since June 15.
The world’s largest cryptocurrency has since rebounded, with price peaking at $26,258.05 earlier in the day.
Looking at the chart, the decline came as the 14-day relative strength index (RSI) briefly moved below support at 35.00.
Bulls have since reentered the markets following the slippage, buying the dip, and pushing price strength to a current reading of 46.50.
The next visible point of resistance appears to be at the 52.00 mark, and should price strength reach this point, BTC will likely be above $26,500.
Ethereum
Ethereum (ETH) has also experienced a high level of volatility in the past 24 hours, falling to a multi-month low in the process.
ETH/USD dived to a low of $1,533.43 during yesterday’s session, before rebounding, and is currently trading at $1,619.11.
As a result of Monday’s drop, ethereum fell to its lowest level since March 12, when price was under $1,500.
From the chart, today’s rally saw the RSI move away from the oversold zone, and it is now at a reading of 41.52.
This is marginally above a ceiling of 41.00, with a level of 50.00 the apparent target for short-term bulls.
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What was the cause of today’s volatility? Leave your thoughts in the comments below.
