Thursday, 9 March 2023
by Berkeley Lovelace
Bitcoin moved below the $22,000 level on March 8, as markets continued to react to U.S. Fed Chair Jerome Powell’s testimony. Speaking in front of the Senate Banking Committee, Powell said he expected rates to be higher than initially anticipated. Ethereum has also slipped on the news.
Speaking yesterday, Powell stated that “the ultimate level of interest rates is likely to be higher than previously anticipated.”
BTC/USD fell to a low of $21,964.99 earlier in today’s session, a day after residing at a peak of $22,421.42.
The move transpired following a breakout of a key support point at $22,300, which coincided with the relative strength index (RSI) falling from a floor of its own at 42.00.
As of writing, the index is now tracking at 40.36, with a lower floor at 38.00 a possible target for bears.
Should this point of support be reached, there is a strong chance that BTC will be trading close to the $21,600 mark.
Although also in the red, ethereum’s (ETH) decline was significantly more muted than that of its counterpart.
Following a high of $1,568.23 on Tuesday, ETH/USD marginally moved to a low of $1,543.13 during today’s session.
As a result of the move, ethereum briefly broke out of a historic area of support at $1,550 earlier in the day.
Currently, ETH is back above this point, and is trading at $1,557.87, which comes as the RSI hovers above a recent deck of its own.
At the time of writing, price strength is at 43.54, which is above a floor at 43.00, having been in place since February 13.
Should this level hold firm, ETH bulls will likely attempt to buy more of this week’s dip in price.
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Will market sentiment remain bearish for the remainder of the week? Leave your thoughts in the comments below.