Bitcoin was trading lower to start the week, as markets were anticipating the release of U.S. president Biden’s executive order on cryptocurrencies. Ethereum also remained in the red, and continues to track at multi-week lows.
Bitcoin prices were almost 12% lower from the same point last week, as prices fell for a sixth straight day on Monday.
Following a high of $39,394.44 on Sunday, BTC/USD dropped to a low of $37,358.00 to start the trading week.
The move saw BTC near its long-term support against the dollar of $37,200, hitting its lowest level since February 4 in the process.
Price strength in bitcoin is now firmly oversold, with the 14-day RSI tracking at 39, which is its lowest point in over three weeks.
This recent downward trend has pushed the 10-day (red) moving average on the cusp of crossing over the 25-day (blue) MA.
Should this happen, we may see yet even more declines in the price of the world’s largest cryptocurrency.
Like bitcoin, prices of ethereum were also down to start the week, with the world’s second largest cryptocurrency trading almost 9% lower from its position last Monday.
Monday saw ETH/USD fall to an intraday low of $2,585.95, which is its weakest level since February 3.
This three-week low came as ETH headed to what seems to be a new floor of $2,560, as can be seen from the chart below.
However, shortly after hitting this point, the price of ETH rallied, as historical bulls who bought at this point once again re-entered.
This slight rebound has somewhat prolonged the inevitable downside cross of the 10-day and 25-day moving averages, which only recently showed markets signs of further upwards momentum.
What are the main factors behind this selloff? Leave your thoughts in the comments below.