On Tuesday, Bitcoin saw another loss, making this the ninth straight session in which the cryptocurrency market has fallen. The price of bitcoin dropped below the $20,000 level for the first time since December 2020, while the price of ether reached $1,000, marking a multi-year low for the cryptocurrency.
BTC was trading at a lower price for the eighth day in a row, with the decrease on Monday lowering prices to their lowest position since December 2020.
Following yesterday’s low of $23,607.69, the most valuable cryptocurrency token in circulation today reached a session low of $20,950.82 before recovering some of its losses.
The most recent drop comes as market participants get ready for tomorrow’s FOMC meeting when it is widely anticipated that the Federal Reserve will announce a rise in interest rates.
As the rate of inflation in the United States continues to approach its all-time high, many people now believe that the Federal Reserve must implement further policy adjustments in order to battle growing consumer prices.
With a current value of 23.77, the 14-day relative strength index (RSI) is now tracking at its lowest position in more than five years of historical data.
Following the recent decreases in value, many people feel that we have not yet found a price floor, with some anticipating that prices may likely settle somewhere around $19,000.
On Tuesday, the price of Ethereum, which is the world’s second-largest cryptocurrency by market capitalization, continued its downward trend and dropped below $1,100.
ETH/USD reached a high of $1,269.76 to begin the week, and it then dropped to an intraday low of $1,094.70 throughout the course of the day.
Due to this decline, ETH reached its all-time low, which had not been seen since January 2021, when prices rebounded from a low of $748.
As a consequence of the most recent price decrease, Ethereum was able to break through the support level located at $1,275, and it currently seems that it will find support somewhere around $800.
The bulls are likely going to make an effort to stop this from taking place, and they will get support from the fact that the 14-day relative strength index is very oversold and there is the very little negative volume remaining.
At this time, the relative strength is tracking at 21, which is the lowest rating it has had since March 2020, which was during the initial peak of the coronavirus pandemic.