Bitcoin fell below the $20,000 level for the first time since January as the market continued to react to the Silver Gate Bank liquidation. This comes ahead of the pivotal U.S. nonfarm payrolls report, which could determine how aggressively the Federal Reserve will act at its upcoming meeting. Ethereum moved below $1,400 in today’s session.
Bitcoin (BTC) fell for the fifth consecutive session on Thursday as the market continued to react to the liquidation of Silvergate Bank.
The bank confirmed it would scale back operations, leading U.S. Senator Elizabeth Warren to condemn crypto as a whole.
Thus, less than 24 hours after hitting $21,796.12,BTC/USD fell to an intraday low of $19,669.92 earlier today.
The plunge in price sent bitcoin to its weakest point since hitting bottom at $18,714 on January 13.
The sell-off was also triggered by the 14-day Relative Strength Index (RSI) falling below the critical low of 32.00.
As of this writing, the index is hovering at 26.11, deep in oversold territory and the lowest price strength reading since November 9.
Ethereum (ETH) was significantly lower in Friday’s session due to this afternoon’s nonfarm payrolls report, which also led to higher market volatility.
Employment in the U.S. economy last month is expected to come in at 205,000, down from 517,000 in January.
Depending on this result, the decline may have an overall positive effect as the Federal Reserve may be less aggressive in raising interest rates.
ETH/USD fell to a low of $1378.53 early in the session, a day after trading at a peak of $1543.69.
Overall,the ETHfell nearly 10% in the past week, with today’s drop making it the lowest since mid-January.
As a result of this sell-off, the RSI is now at 28.30, which is its weakest point since last June.
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