Bitcoin (BTC) experienced a drop in value at the start of the week due to the latest nonfarm payrolls report. The report showed an increase in jobs added to the U.S. economy, which many believed justified the Federal Reserve’s decision to hike interest rates by 0.25%. As a result, BTC/USD fell to an intraday low of $27,691.26, following a peak of $29,119.38 the day before. This latest drop marked the third consecutive session of falling prices, sending BTC to a one-week low.
Catalysts for the Decline
One of the triggers for the decline was a breakout on the relative strength index (RSI), which fell below a floor at 47.00. The index is currently tracking at 44.32, with a floor of 42.00 as a possible target for bears. Ethereum (ETH) also experienced a decline on Monday, with prices dropping below $1,900. Following a high of $1,934.00 on Sunday, ETH/USD dropped by almost $100, hitting a low of $1,839.89 earlier in the day.
Ethereum Bears Attempt to Take RSI to Point of Support
ETH experienced a similar decline to BTC, falling for its third consecutive day. Ethereum bears are now trying to take the RSI to its own point of support at 45.00. Currently, the index is at the 47.02 level, having recently moved below a higher support point at 49.00. If the target of 45.00 is reached, there is a possibility that ETH will trade under $1,800.
Overall Market Reaction
The latest nonfarm payrolls report had an impact on the overall cryptocurrency market, causing a decline in prices. However, analysts are still optimistic about the future of cryptocurrency, as blockchain technology continues to gain adoption in various industries. The market is expected to experience ups and downs, but many believe that the long-term outlook for cryptocurrency remains positive.