Bitcoin and Ethereum experienced a dip in prices on Monday, as economic events took center stage. Bitcoin (BTC) had reached a high of $29,952.03 before slipping to an intraday low of $28,360.50. This drop saw the cryptocurrency fall below a key support level of $28,500, which is the lowest it has been since April 27. Despite this, BTC remains nearly 4% higher than it was at the same time last week when prices were close to $27,000. The Relative Strength Index (RSI) also fell to its floor at 50.0, but has since rebounded to 50.09 as BTC currently trades at $28,591.66.
Ethereum (ETH) also experienced a drop in prices, with ETH/USD reaching a bottom at $1,829.41. This comes less than 24 hours after trading at its peak of $1,938.42. Similar to BTC, ETH also fell below its support level of $1,830. However, bulls were on hand to buy the dip and help ETH rebound from the floor. The RSI collided with a support zone at 45.0 and is currently tracking beyond this point. Bulls are expected to aim for reentry above $1,900 in the coming days.
The crypto market has been preparing for a pivotal week of economic events, with the Federal Reserve expected to announce an increase in rates by 25 basis points on Wednesday. Additionally, nonfarm payrolls for April were released on Friday. The results of these events will likely have an impact on the crypto market, particularly on BTC and ETH.
Despite the recent price dips, both BTC and ETH have seen significant growth in value over the past year. BTC broke previous records and reached a high of $64,000 in April, while ETH reached an all-time high of $4,356 on May 12. The rise of NFTs has contributed to the growth of Ethereum, as it is the preferred blockchain platform for NFT creation and trading.
Investors and analysts are keeping a close eye on the crypto market, particularly as more institutional investors and companies begin to embrace cryptocurrencies. Companies such as Tesla and MicroStrategy have invested millions of dollars in Bitcoin, while Visa and PayPal have started to offer cryptocurrency payment options. Additionally, Goldman Sachs has re-established its cryptocurrency trading desk, indicating a renewed interest in crypto from traditional financial institutions.
The future of cryptocurrencies remains uncertain, with ongoing debates about regulation, environmental impact, and market volatility. However, many believe that BTC and ETH will continue to grow in value and importance, with some predicting BTC reaching $100k in value by the end of the year.
In summary, BTC and ETH experienced a dip in prices on Monday as markets prepared for pivotal economic events. Despite this, both cryptocurrencies remain significantly higher in value compared to last year. The rise of NFTs and increasing institutional interest in cryptocurrencies are expected to contribute to their growth in the coming years. As always, the future of the crypto market remains uncertain, but many are optimistic about its potential.
