Bitcoin, Ethereum Technical Analysis: BTC Drops Below $27,000 as US Debt Ceiling Fears Grip Markets
Bitcoin fell below the $27,000 level on May 17, as market uncertainty remained high amidst the debt ceiling crisis in the United States. Congress continues to negotiate terms of a potential increase to the limit, before the U.S. government runs out of cash on June 1. Ethereum also dropped, breaking out of the $1,800 level.
Bitcoin (BTC) moved below the $27,000 level on Wednesday, following yesterday’s U.S. Retail Sales report.
BTC/USD moved to a low of $26,785.41 earlier in today’s session, which was following Tuesday’s peak at $27,223.07.
Today’s sell-off comes as bitcoin was unable to move beyond its key price ceiling at the $27,300 mark, leading to a shift in bearish sentiment.
Looking at the chart, the decline also coincided with the 14-day relative strength index (RSI) failing to break its point of resistance at 42.00.
As of writing, price strength is tracking at 38.08, and seems to be heading close to a support zone of 36.00.
Should this point be reached, then there is a strong possibility that BTC could slip below $26,000.
In addition to BTC, ethereum (ETH) also trended lower, falling under the $1,800 level in today’s session.
Following a high of $1,835.55 on Tuesday, ETH/USD plunged to an intraday low of $1,792.08 earlier in the day.
As a result of today’s drop in price, ethereum neared a long-term floor of $1,790, which is where price has retreated to during the past week.
Similar to BTC, the RSI here is also edging closer to a floor of its own, which in this instance is at the 41.00 point.
Price strength, which is currently at the 41.97 level, was unable to breach a resistance zone of 47.00, leading to today’s drop-off.
There is a good chance that ETH could change course in the upcoming days, providing the floor at 41.00 remains firm.
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What else is behind today’s drop in crypto prices? Leave your thoughts in the comments below.