Today's session saw a plunge in cryptocurrency prices as markets responded to the U.S. inflation report. Bitcoin dropped by more than $2,000 over the past 24 hours as US consumer prices fell less than anticipated. Ethereum also fell below $1,600, which was a red flag.
Today's session saw Bitcoin (BTC), which traded lower, due to markets continuing to react to the U.S. latest inflation report.
After a Tuesday peak of $22,673.82, BTC/USD fell to $20,062.67 today.
Markets expected August's consumer price inf (CPI), to be 8.1%. This is down from 8.5% the previous month.
With the CPI at 8.3%, traders lost confidence, causing chaos in the crypto market.
The chart shows that this sell-off occurred after a false breakout at $22,600 resistance. Prices are now hovering around the key support point.
BTC/USD trades at $20,164.21 as of writing. This is slightly below the floor of $20,600.
If bearish sentiment persists throughout the day traders could target a lower support level at $19,300.
Ethereum (ETH), which fell below $1,600 on the day of The Merge event's anticipated start, was also hit by the bearish storm.
Within 24 hours of hitting $1,637.05, the second-largest cryptocurrency in the world fell to $1,564.03 on Wednesday.
The token's drop in USD/ETH saw it reach its lowest point in the past week. This puts it in close proximity to the long-term floor at $1,550.
The bulls have so far not broken below this level, and many are choosing to reenter and purchase the current dip.
At the time of writing, ethereum trades at $1,594.08, with bulls hoping to push prices higher than $1,600.
Many people still believe that ETH will rally over the coming days. They remain optimistic about tomorrow's Merge and the long-term consequences it could have.
Sign up here to receive weekly price analysis updates to your inbox:
What do you think will happen to sentiment in ethereum in the next few days? Comment below to share your thoughts.
By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: BTC Drops by Over $2,000 in the Last 24 Hours
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-drops-by-over-2000-in-the-last-24-hours/
Published Date: Wed, 14 Sep 2022 13:00:49 +0000