Bitcoin, Ethereum Technical Analysis: BTC, ETH Fall Lower, as US Consumer Confidence Hits 6-Month Low
Bitcoin erased recent gains on Wednesday, as markets reacted to the latest points of U.S. economic data. One of which being consumer confidence, which dropped to a six-month low in May. Ethereum was also lower in today’s session, dropping below $1,900.
Bitcoin (BTC) neared a breakout below $27,000 on Wednesday, as markets reacted to the latest data surrounding consumer confidence in the United States.
Following a high of $28,037.69 on Tuesday, BTC/USD slipped to an intraday low of $27,009.69 earlier in the day.
The downturn comes as momentum in the market has slightly shifted, with the global crypto market cap falling by 2.59% as of writing.
Overall, today’s decline in BTC comes despite an upcoming crossover between the 10-day (red) and 25-day (blue) moving averages.
From the chart, it appears that a failed breakout of a ceiling at 53.00 on the relative strength index (RSI) played a significant role in this.
The index is now tracking close to a floor at 46.00, with a current reading of 47.10, and should this hold, a reversal is still possible.
Ethereum (ETH) dropped below $1,900 in today’s session, as bulls retreated from a recent multi-week high.
ETH/USD sunk to a bottom at $1,860.37 earlier in today’s session, which comes after a peak of $1,914.85 the day prior.
Overall, the shift in momentum has led to ethereum moving away from a recent high of $1,928, which was the strongest point price had hit since May 8.
Looking at the chart, failure to move past a resistance level of $1,930 can be partially blamed for the change in direction.
Overall, bears now seem to be set on taking price to a support point at $1,830, with the RSI hunting for a floor of its own.
The index is now tracking at 52.60, with the next visible floor potentially at 49.00.
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What do you believe is behind today’s downturn? Leave your thoughts in the comments below.