Bitcoin, Ethereum Technical Analysis: BTC Below $16,000 Amid Increased Market Volatility
Bitcoin slipped below $16,000 on Nov. 21, as markets continued to react to the news that the FTX contagion had impacted yet another firm. Hong Kong-based crypto ATM firm Genesis Block halted its operations, as it looks to stabilize its liquidity pool. Ethereum was also lower, as prices remained below $1,200.
Bitcoin (BTC) slipped below $16,000 to start the week, as volatility in cryptocurrency markets continued to rise.
Following a high of $16,590.42 on Sunday, BTC/USD dropped to an intraday low of $15,943.14 earlier today.
The move pushed the world’s largest cryptocurrency to its lowest point since November 14, when prices fell below a key support point of $16,200.
Looking at the chart, BTC continued to trade below this point of support in today’s session, with the 14-day relative strength index (RSI) also hovering near a floor of its own.
The index is currently tracking at the 32.79 level, which is marginally below a key support point of 33.00.
Should this decline continue, we will likely see bitcoin bears attempt to take the token towards a lower floor of $15,600.
Like BTC, ethereum (ETH) extended recent declines, stumbling lower for a second straight session on Monday.
ETH/USD fell to a low of $1,110.57 to start the week, which comes less than 24 hours after hitting a high of $1,183.43.
Today’s drop, which saw the token fall by as much as 4%, took ETH to its lowest point since November 10.
Bears seem to be targeting a floor of $1,100, however traders have so far rejected this proposition, with the token bouncing, and it is now trading at $1,120.26.
As can be seen on the chart, Monday’s drop in price coincided with the RSI breaking out of its own floor at 37.75, and it is now at 34.61.
The momentum of the 10-day (red) moving average has once again shifted, with the trendline suggesting that further declines could be on the way.