Bitcoin experienced a decline, falling under the $26,000 mark, as the financial markets eagerly anticipated the release of the U.S. non-farm payrolls (NFP) report for August. Although predictions had pointed to a decrease to 170,000 jobs, the report exceeded expectations by registering 187,000 new payrolls. Ethereum also registered a drop, descending below the $1,700 price point.
Bitcoin descended below the $26,000 threshold this Friday, just ahead of the unveiling of the U.S. NFP report for August.
The BTC/USD pair touched a low of $25,752 during early trading hours, a considerable drop from its 24-hour peak of $27,456.
This decline culminated a week of intense price volatility for Bitcoin, which had been trading above the $28,000 mark just three days prior.
Chart provided by TradingView
As a consequence of the recent market pullback, Bitcoin approached a critical support level at $25,600.
Although the cryptocurrency had experienced strong gains earlier in the week, the 14-day Relative Strength Index (RSI) failed to surpass the 53.00 resistance level.
This phenomenon prompted earlier bullish investors to lock in profits, thereby liquidating their positions.
At the time of this report, the RSI stands at 38.58. However, Bitcoin’s price has rebounded and is currently trading above $26,000, following the release of the NFP report.
During the current trading session, Ethereum (ETH) maintained a bearish trajectory, declining below the $1,700 level.
Upon achieving a high of $1,720 on the previous day, the ETH/USD pair experienced a downturn, hitting a low of $1,634 earlier in the day.
This slump caused Ethereum to momentarily break through a recent support level established at $1,650.
Chart provided by TradingView
Much like Bitcoin, Ethereum’s downturn is correlated with the RSI’s failure to surpass a vital resistance level.
Currently, the index records a figure of 38.05, only days after it encountered a resistance ceiling at 49.00.
Should this declining momentum persist, Ethereum could potentially target the $1,600 price level as its next support.
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What are your projections for the cryptocurrency market’s performance in September? Share your insights in the comments section.
Frequently Asked Questions (FAQs) about Technical Analysis of Bitcoin and Ethereum
What is the primary focus of this technical analysis report?
The primary focus of this technical analysis report is to examine the recent market behavior of Bitcoin and Ethereum, particularly in the context of the U.S. non-farm payrolls data for August. It delves into price fluctuations, support and resistance levels, as well as the Relative Strength Index (RSI) for both cryptocurrencies.
How did the U.S. non-farm payrolls data impact Bitcoin and Ethereum?
The U.S. non-farm payrolls data for August exceeded market expectations, reporting 187,000 new jobs against an anticipated 170,000. Following this news, Bitcoin saw some stabilization above the $26,000 mark, while Ethereum remained bearish, dropping below $1,700.
What are the key technical indicators mentioned in the report?
The key technical indicators discussed in this report are the 14-day Relative Strength Index (RSI) and critical price support and resistance levels for both Bitcoin and Ethereum.
What are the significant support and resistance levels discussed for Bitcoin?
The report identifies a critical support level for Bitcoin at $25,600 and a resistance level at an RSI of 53.00, which the cryptocurrency failed to surpass.
What are the significant support and resistance levels discussed for Ethereum?
For Ethereum, the report notes a significant support level at $1,650, which the cryptocurrency briefly fell below. It also mentions that the RSI failed to surpass a critical resistance level.
Is the report useful for both novice and experienced investors?
While the report is technical in nature and geared towards those who have an understanding of indicators like RSI and price levels, it can offer critical market insights that are valuable for both novice and experienced investors.
How can I subscribe to receive weekly technical analysis updates?
The report offers a subscription option for receiving weekly technical analysis updates. You can register your email address to subscribe to these regular updates.
What future price targets are discussed for Bitcoin and Ethereum?
The report doesn’t explicitly set future price targets but mentions that should the declining momentum continue for Ethereum, the next price target could be $1,600. For Bitcoin, the report focuses more on existing support and resistance levels.
More about Technical Analysis of Bitcoin and Ethereum
- U.S. Non-Farm Payroll Statistics
- Bitcoin Price Chart by TradingView
- Ethereum Price Chart by TradingView
- Understanding the Relative Strength Index (RSI)
- Basics of Support and Resistance Levels in Trading
- Overview of Cryptocurrency Markets