Bitcoin (BTC) fell below $20,000 as the weekend sell-off in cryptocurrency markets intensified. Ethereum (ETH) was also trading below a critical level, with prices dropping under $1,000 for the first time in more than 18 months.
BTC dropped below $20,000 on Saturday but bounced back after buyers took action on Sunday. Despite the buyers’ best efforts, we believe the current resistance level at $20,961 is strong enough to hold price movement.
BTC’s support was at $17,550 on Saturday, making the drop much lower than the support level of $19,783, the highest recorded in December 2017. Many crypto traders believed then that it would not plunge below that level. However, due to the drop last weekend, several analysts forecasted that more downward movements might occur.
The BTCUSD pair dropped about $14,000 since the start of the month, and several buyers may see this as an opportunity. However, given the market’s present volatility, we may see weaker movements in the coming weeks.
ETH, like bitcoin, slipped below the critical level on Saturday, with prices falling below $1,000 for the first time since January 2020. ETH was able to bounce back on Sunday after buyers saw the opportunity.
ETHUSD fell as low as $877.24 but regained and is now trading at $1156,97, higher than Saturday and Friday’s high.
ETH prices moved slightly above $1,000, but more movements below this level are possible, with a resistance level of $1187 and a support level of $863.
In terms of percentage, the loss in ETH over the last seven days has been more significant than the drop in BTC, with prices plunging by about 40% since last Saturday.