Bitcoin has dropped to its lowest level within the past 16 months, and the entire crypto market is also plunging. Similarly, ethereum also faced a considerable drop in value, as its prices decreased by 16%. Thus falling below $1200 in the process.
The crypto market plunged to start the new week. Consequently, the leading cryptocurrency, bitcoin, plunged to its lowest value since December 2020.
Earlier today, the price of bitcoin dropped significantly to $23,607.69. The current price is its lowest in the past 16 months.
Following an unprecedented and highly unexpected rise in inflation within the United States, the markets sold off, and the prices decreased as a new week started in the crypto market.
The decrease in the value of bitcoin was not out of the blue. The prices have been decreasing for seven consecutive sessions. The bitcoin price is estimated to have decreased by around 25% within that time frame.
Bitcoin had been standing on its support point at $25,200. However, with the recent drop, it has fallen far from the support point, and experts speculate that the prices will continue to plunge. They state that bitcoin’s value will reach as low as $19,000.
At the time of writing, the Relative Strength Index or RSI is tracking at 27. However, the pattern of the significant drop in the value indicates that the RSI could be moving to a floor of 24.50.
The start of the trading week was not pleasing to the ethereum holders. For the first time in 12 months, the value of ETH dropped below the belt of $1200.
Ethereum is the world’s second-largest cryptocurrency, right after bitcoin. As bitcoin was affected, ethereum was no different in this regard. Today (Monday), the price of ethereum dropped to $1,190.04, falling about 16% in the process.
The drop in the value of ethereum comes after a consecutive seven-day decline. The current prices are the lowest since January 2021.
Consequently, within the time frame of the past seven days, ETH’s price declined by over 35%. The Relative Strength Index is also no good as the RSI reading is the lowest over two years.
Since the price strength of Ethereum is oversold, some experts are hopeful that ethereum will recover from the fall. However, others believe it will drop to as low as $1,100.