Bitcoin was trading near a key support point on Monday as markets prepare for a week of big economic data. The headline release was Wednesday’s U.S. inflation report, which is expected to come in at 8.1% for September, down from 8.3% in August. Ethereum was also in the red, with the token falling to a one-week low to start the week.
Bitcoin opened at a 7-day low and the market is preparing for a week of big economic indicators.
BTC/USD fell to a bottom of $19,162.31 on Monday, sending prices below a key support point of $19,300.
Since hitting this floor, bulls have since re-entered and pushed prices back above the aforementioned support.
The chart shows that today’s price drop is due to the 14-day Relative Strength Index (RSI), which has bottomed.
As of this writing, the index is tracking 45.47, just above support at 45.00, but bulls have so far rejected any breakout attempt.
At this point, we expect bitcoin to bounce from here and head toward the $20,000 mark.
In addition to Bitcoin, Ethereum (ETH) is also hovering near a one-week low on Monday, with prices near breakout.
The world’s second-largest cryptocurrency fell to a low of $1,300.00 to start the week, but bears failed to take the token below this point.
From the chart, it appears that there are still bulls inETH
If this crossover takes place, the price of Ethereum could surge toward resistance at $1390.
Traders will pay close attention to the RSI for guidance.
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