Following a brief rally above $20,000 and $1,600 respectively, bitcoin and ethereum fell below these levels to start the weekend. The decline comes as momentum surrounding yesterday’s nonfarm payrolls report faded. Bitcoin moved closer to its support point of $20,500, while ethereum was trading close to its floor of $1,550.
Bitcoin
Bitcoin (BTC) was back below $20,000 to start the weekend, as prices of the token moved closer to a key support point.
Initial bullish momentum following last month’s payrolls has seemingly faded, with markets gearing up an economic downturn.
Although Friday’s figure of 315,000 jobs was better than expected, this was lower than July’s number of 528,000.
As a result of this, BTC/USD slipped to a low of $19,779.55 on Saturday, less than 24 hours after trading at a peak of $20,401.57.
Looking at the chart, bitcoin is now on the cusp of colliding with its price floor of $19,500, which hasn’t been broken since July 16.
However, should the relative strength index (RSI,) which currently tracks at 35.77, fall to its own floor of 33.95, then this breakout will likely occur.
Ethereum
In addition to BTC, ethereum (ETH) was also lower during Saturday’s session, as the token once again fell below $1,600.
Following a high of $1,643.18 on Friday, ETH/USD slipped by about $100, hitting a bottom of $1,542.30.
This drop sees ethereum briefly break out out of its own support at $1,550 to start the weekend, as bearish sentiment in crypto returned.
Earlier declines have now eased, as profit takers opted to abandon their positions as opposed to keeping trades open.
Although prices have since risen above the earlier floor, there are some who fear that further declines are ahead.
Bears are likely looking towards a floor of $1,420 as a possible target, should volatility in markets remain geared to the downside.
Register your email here to get weekly price analysis updates sent to your inbox:
Could we see ethereum hit $1,420 this weekend? Leave your thoughts in the comments below.