Bitcoin fell to its lowest level since December 2020 to start the trading week, as crypto markets continue to plunge. ETH also fell considerably on Monday, as prices declined by over 16%, falling below $1,200 in the process.
Bitcoin fell to its lowest level since December 2020 on Monday, as crypto markets plunged to start the week.
Markets sold off over the weekend following an unexpected rise in U.S. inflation, with price declines carrying over into the new trading week.
BTC/USD fell to an intraday low of $23,607.69 earlier in today’s session, which is its lowest point in over sixteen months.
Overall, prices have declined for seven consecutive sessions, falling by over 24% within that time frame.
The most recent drop comes as BTC moved past its long-term support point at $25,200, with some expecting prices to fall to as low as $19,000.
As of writing, the 14-day RSI is tracking at 27, however it looks as though it could be moving towards a floor of 24.50.
There was also some bloodshed in ETH on Monday, as prices fell below $1,200 for the first time in over a year.
The world’s second-largest cryptocurrency plummeted to an intraday low of $1,190.04 on Monday, falling by over 15% in the process.
Monday’s drop saw ethereum’s price hit its lowest level since January 2021, and also comes after seven straight daily declines.
As a result of this, prices have dropped by over 35% in the last seven days, with the RSI having its lowest reading in over two years.
With price strength so oversold, the hope is that prices could rebound, however some bears are seemingly targeting the $1,100 point.
Overall, this recent sell-off comes after days of consolidation, which ended on Friday, following the release of U.S. inflation data, which came in at 8.6%.
Will we see crypto prices continue to drop this week? Leave your thoughts in the comments below.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
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