Bitcoin and Ethereum prices continued to decline on Friday, with Bitcoin falling for a third consecutive session, while Ethereum edged lower as well. The shift in market sentiment has been underpinned by investors who have been taking profits since last week’s high. Bitcoin fell below the $28,000 mark, while Ethereum neared a breakout below $1,900.
Bitcoin’s decline has pushed prices to their weakest point since April 9th, the last time the digital currency hit a floor of $27,800. Bitcoin bulls have re-entered the market since prices neared this point, pushing prices back above $28,000. The 14-day Relative Strength Index (RSI) declined to a floor of its own at 46.00, resulting in today’s drop. The index has marginally risen from this low and is tracking at 46.35 at the time of writing.
Ethereum, like Bitcoin, also edged lower. The cryptocurrency fell to a low of $1,904.42, closing in on a potential breakout below $1,900. This came two days after Ethereum hit a peak of $2,105. Consequently, the world’s second-largest cryptocurrency is now trading at its lowest level in eight days.
Overall, Ethereum is trading almost 10% lower than it did last week, when it rose above $2,000 for the first time since last May. The RSI significantly dropped, with the index breaking out of a floor at the 53.00 level, and it is now at a reading of 49.46. If momentum continues to fall, bears are likely to target a point of support at 44.50.
The downturn in Bitcoin and Ethereum prices is believed to be a result of profit-taking by investors who had invested last week during the high. It seems like investors are now taking off some of their recent gains since both digital currencies have peaked over the past few months. Nevertheless, despite the downward trend, there’s still some optimism for a rebound in the market.
As the world becomes increasingly digitized, Bitcoin and other cryptocurrencies are gaining popularity. Cryptocurrencies offer several benefits over traditional currencies, such as decentralization, anonymity, and speed. Besides, people are becoming more aware of the blockchain technology that cryptocurrencies are based on. Blockchain technology is essentially a decentralized digital ledger that records transactions in a transparent and secure way, making it virtually impossible to alter or hack the data.
In conclusion, the decline of Bitcoin and Ethereum prices is not entirely unexpected, given their wild volatility. The recent dip may be unwelcome news for investors who have become accustomed to quick profits in the crypto market. Still, it’s important to note that cryptocurrencies tend to be cyclical and have seen peaks and troughs before. Investors looking to jump into the market should do so with caution and seek professional financial advice.