Late on Wednesday, Bitcoin (BTC) briefly dropped below $27,000, as markets reacted to the latest U.S. inflation report. After reaching an earlier high of $28,322.69, BTC/USD slipped to an intraday low of $26,883.67 towards the close of yesterday’s session. This move saw bitcoin drop to its weakest point since March 28, when the price was at a low of $26,640.
Since this earlier decline in price, BTC has since rebounded and is currently trading at $27,494.24. From the chart, this appears to be due to the relative strength index (RSI), which is now tracking at 41.91 and close to reentering a floor at 43.00. Should this occur, there is a strong possibility that the world’s largest cryptocurrency could be back above $28,000.
Ethereum also falls to multi-week low
Additionally, ethereum (ETH) also fell to a multi-week low in today’s session, dropping below $1,800 in the process. ETH/USD slipped to a bottom at $1,795.67 late on Wednesday, following an earlier peak of $1,886.80. As a result of the sell-off, the cryptocurrency dropped to its lowest level since April 26, however, the price has since rebounded.
Crossover between moving averages could signal reversal in momentum
One of the catalysts for the sell-off was a breakout which took place on the RSI, which saw the index fall below 45.00. At the time of writing, price strength is tracking at 43.93, with ethereum now trading at a price of $1,824.22. It appears that a crossover between the 10-day (red) and 25-day (blue) moving averages will likely occur and could signal a reversal in momentum.