After a brief rally above $20,000 and $1,600 respectively, bitcoin and ethereum fell below those levels to start the weekend. The drop comes as the momentum surrounding yesterday’s US jobs report faded very quickly. Bitcoin moved closer to its $20,500 support point, while ethereum was trading near its $1,550 low.
Bitcoin fell back below $20,000 to start the weekend, as prices for the token moved closer to a key support point.
The initial bullish momentum following the release of U.S. employment numbers last month appears to have faded as markets prepare for an economic slowdown.
While Friday’s 315,000 jobs figure was better than expected, it was lower than July’s 528,000.
As a result, BTC slipped to a low of $19,779.55 on Saturday, less than 24 hours after hitting a high of $20,401.57. Looking at the chart, bitcoin is now on the verge of colliding with its low price of $19,500, which has not been broken since July 16.
However, if the Relative Strength Index (RSI), which is currently at 35.77, falls to its own low of 33.95, this breakout will likely occur.
On top of that Ethereum was also down in Saturday’s session, with the token once again falling below $1,600. After a high of $1,643.18 on Friday, ETH slipped by about $100, hitting a low of $1,542.30.
The drop sees ethereum briefly break out of its own support at $1,550 to start the weekend, as bearish sentiment in the crypto has returned.
Previous declines have now subsided as profit takers have chosen to abandon their positions rather than keep trades open. Although prices have since recovered above the previous low, some fear that further declines are in store.
Bears are likely looking to a floor of $1,420 as a possible target, if volatility in the markets remains trending lower.