Miguel Lopez Bitcoin faced downward momentum as it dropped below the $26,000 mark, signaling a weekend of bearish pressure following a volatile week. Traders reacted to the U.S. Securities and Exchange Commission’s (SEC) recent crackdown on cryptocurrencies, leading to a shift in market sentiment. Meanwhile, Ethereum also saw a decline below $1,800.
Bitcoin
Bitcoin (BTC) opened the weekend with trading below $26,000, as market participants continued to grapple with the consequences of the SEC’s regulatory actions on cryptocurrencies.
The latest development involved Robinhood, which delisted several altcoins, including solana and cardano, from its platform.
In response to the news, BTC/USD plummeted to an intraday low of $25,502, following a previous day’s peak of $26,770.
Analyzing the daily chart, this downturn coincided with the 14-day relative strength index (RSI) dropping to 39.00, approaching a significant level.
As of the present, the RSI stands slightly above this point at 40.06.
Additionally, the 10-day moving average (red) has crossed below the 25-day moving average (blue), further confirming the prevailing bearish sentiment.
Ethereum
Ethereum (ETH) also encountered bearish pressure as it dipped below the $1,800 threshold at the beginning of the weekend.
After reaching a peak of $1,861.14 on Friday, ETH/USD fell to a low of $1,721 during the current trading session.
This movement brought Ethereum to its lowest point since late April, breaking through the support level at $1,730.
Examining the daily chart, the RSI reflected a decline in market momentum, reaching its lowest reading since March.
The index currently hovers below 40.00, indicating proximity to the oversold region, which could offer a minor positive signal for bullish traders.
If prices continue to fall into oversold territory, long-term bulls may seize the opportunity to buy the dip.
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Share your thoughts in the comments below on the likelihood of further regulatory crackdowns on crypto companies next week.
Table Of Contents
Frequently Asked Questions (FAQs) about crypto crackdown
What is causing the bearish pressure on Bitcoin and Ethereum?
The bearish pressure on Bitcoin and Ethereum is primarily driven by the recent crackdown on crypto by the U.S. Securities and Exchange Commission (SEC). This regulatory action has created uncertainty and led to a shift in market sentiment, resulting in downward price movements for both cryptocurrencies.
How low did Bitcoin and Ethereum prices drop?
Bitcoin dropped below the $26,000 level, reaching an intraday low of $25,502. Ethereum, on the other hand, slipped below $1,800, hitting a bottom of $1,721 during the current trading session. These price drops signify the impact of the bearish pressure on both cryptocurrencies.
Is the SEC’s crackdown affecting other altcoins as well?
Yes, the SEC’s crackdown on crypto has affected other altcoins too. For instance, Robinhood recently delisted several altcoins, including solana and cardano, from its platform. This demonstrates that the regulatory actions are not limited to Bitcoin and Ethereum but are impacting the broader cryptocurrency market.
Could there be more regulatory crackdowns on crypto companies in the near future?
The possibility of additional regulatory crackdowns on crypto companies in the near future cannot be ruled out. The SEC’s actions have sparked concerns and raised questions about the regulatory landscape for cryptocurrencies. It is advisable to closely monitor regulatory developments and stay updated on any potential regulatory actions that may arise in the coming weeks.
