As August begins, Bitcoin fell under the $29,000 threshold, primarily due to the continuing growth of the U.S. dollar against other G7 currencies. The surge in the U.S. dollar comes just before the release of the afternoon’s manufacturing Purchasing Managers Index (PMI), projected to rise to 46.8. Meanwhile, Ethereum saw a drop to its lowest in five weeks.
Bitcoin (BTC) started Tuesday trading under the $29,000 mark, following the increasing strength of the U.S. dollar.
The BTC/USD pair saw a plunge from its initial weekly high of $29,463.87, to an early session low of $28,801.28.
This is the lowest Bitcoin has dropped since June 21, when it recorded a low of $28,271.
BTC/USD – Daily Chart
Examining the chart, today’s fall occurred after the relative strength index (RSI) surpassed the 41.00 level.
At the time of writing, the index is at 39.29, with the next noticeable support region at the 35.00 mark.
If Bitcoin hits this level, it is highly probable that BTC will drop below $28,300.
Ethereum (ETH) also started the month in a slump, with the cryptocurrency hitting a several-week low.
ETH/USD plunged to an intraday low of $1,818.41 on Tuesday, descending from Monday’s high of $1,872.17.
Due to this downturn, Ethereum has continued to drop for three consecutive sessions, reaching its lowest point since June 28.
ETH/USD – Daily Chart
Like Bitcoin, the Ethereum sell-off was triggered when the RSI fell under the 43.00 level. The current reading stands at 41.96.
It seems that bears are setting their sights on the $1,795 level, last touched on June 21.
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Do you foresee a further drop in Ethereum in the upcoming days? Share your thoughts in the comments below.
Frequently Asked Questions (FAQs) about Cryptocurrency prices
Q: Why did Bitcoin and Ethereum prices drop at the start of August?
A: The prices of Bitcoin and Ethereum dropped at the beginning of August due to the strengthening of the US dollar against other G7 currencies. The rise in the US dollar’s value led to a decline in the value of cryptocurrencies.
Q: What were the specific price levels for Bitcoin and Ethereum during this drop?
A: Bitcoin slipped below the $29,000 level, reaching a low of $28,801.28, the lowest since June 21 when it hit $28,271. Ethereum, on the other hand, fell to an intraday low of $1,818.41, the weakest point since June 28.
Q: What technical indicators contributed to the decline in Bitcoin and Ethereum prices?
A: The Relative Strength Index (RSI) played a role in both cryptocurrency drops. For Bitcoin, the fall occurred after the RSI broke the 41.00 level, and for Ethereum, it fell below the 43.00 level.
Q: Are there any price support levels to watch for in the Bitcoin and Ethereum charts?
A: Yes, for Bitcoin, the next visible point of support is at the 35.00 zone, and if it reaches that level, there is a possibility that BTC will drop below $28,300. As for Ethereum, bears are targeting the $1,795 level, which was last touched on June 21.
Q: What can we expect for Bitcoin and Ethereum in the coming days?
A: The text does not provide a definitive answer regarding future price movements. However, it does mention the possibility of further declines given the current market trends, US dollar strength, and technical indicators.
More about Cryptocurrency prices
- Bitcoin Technical Analysis
- Ethereum Technical Analysis
- US Dollar Strengthens Against G7 Currencies
- Purchasing Managers Index (PMI) Definition
- Understanding Relative Strength Index (RSI)
- Cryptocurrency Market Trends
- Bitcoin Price History
- Ethereum Price History
- Weekly Market Analysis Reports