Bitcoin fell to a two-week low on Friday as crypto markets continued to react to uncertainty surrounding Silvergate. Binance, Coinbase, and other exchanges moved to halt trading as banks’ solvency was called into question. Ethereum also moved lower, falling below $1,600 in the process.
Bitcoin
Bitcoin (BTC) fell further into the red on Friday as the market reacted to the decline over Silvergate.
The crypto bank recently announced that it could not file an annual report with the Securities and Exchange Commission, while implying that it “has the ability to continue (its) business.”
BTC/USD fell to an intraday low of $22,241.78 less than 24 hours after trading as high as $23,540.16.
As a result, bitcoin fell to its weakest position since Valentine’s Day on February 14.
However, instead of a pool of roses, Friday’s red wave flowed into the market, shifting the price’s strength and weakness significantly.
As of this writing, the Relative Strength Index (RSI) is at 42.91, its lowest level since January 1.
Ethereum
In addition to Bitcoin, Ethereum (ETH) also fell sharply in today’s session, falling below the $1,600 mark.
Following Thursday’s high of $1,652.43,ETH/USD moved to bottom at $1,553.85 earlier in the day.
Today’s decline pushed the world’s second-largest cryptocurrency to its weakest level since February 15.
A move toward $1550 was already in the works, as we predicted earlier in the week, as the 10-day moving average (red) approached a downward intersection with the 25-day moving average (blue).
The RSI also contributed to the sell-off, with the index falling below its most recent support point at 49.00.
There is now price strength atwith ETHat 44.51, just above the next support at 44.00.
Sign up for email here to receive weekly price analysis updates.
Image credits: Shutterstock, Pixabay, Wiki Commons
