In recent days, the cryptocurrency market has experienced significant volatility, with Bitcoin BTC 2.74% and Ethereum ETH 2.68% at the forefront of these fluctuations.
Market analysts and traders have been closely monitoring the movements of these two leading digital assets, attempting to decipher the underlying factors contributing to their price dynamics.
Bitcoin, the world’s largest cryptocurrency by market capitalization, ended a five-day decline on Friday, signaling a potential temporary price floor. This decline came as traders continued to react to the US inflation report, which remained unchanged at 3.7%.
After reaching a low of $26,558.32 during Thursday’s trading session, Bitcoin’s price rose to an intraday high of $26,919.04.
The rebound was observed after Bitcoin touched the $26,560 level, with bullish traders viewing this as a potential bottom. Long-term support appears to be at the $26,000 mark. However, the Relative Strength Index (RSI) has not yet fallen below the 45.00 level, indicating that the price has not reached this area.
The RSI is currently tracking at 46.41, but bearish traders might attempt to push this index lower in the coming days. If the current level holds, Bitcoin could potentially re-enter the $27,000 range over the weekend.
Ethereum, the second-largest cryptocurrency, experienced a minor increase, rebounding from its support level on Friday. During the day’s trading, Ethereum reached a peak of $1,553.51, up from the previous day’s low of $1,523.24.
This recent low marked Ethereum’s lowest price since March 12, when it bottomed out at $1,612. The 10-day moving average (depicted in red) continues to diverge from the 25-day moving average (in blue), indicating a potential bearish sentiment. Although the current price is above the $1,535 floor, this could change in the upcoming days.
External factors have also played a role in the recent cryptocurrency market movements.
Bitcoin’s price fell below $27,000 for the first time since September, with the largest digital asset declining as much as 3.2% to $26,541 in a single day.
This was its most significant drop in a month. Other smaller tokens, such as Solana SOL 1.97% and Polygon MATIC 3.65%, experienced lesser declines.
