After a mini rally this week, the bears of bitcoin returned to action, as volatility in the market increased. Ethereum also fell, dropping back below $1,700.
After a mini rally this week, bitcoin, went back into the red on Friday as the token slipped below a key resistance point.
The world’s largest crypto-currency fell to an intraday low of $21,171.79, nearly $600 below Thursday’s high of $21,744.87.
Today’s drop comes as market sentiment has once again tipped into bearish territory after an attempt to break the $21,600 price ceiling.
Although BTC has climbed slightly above this point, the bulls have chosen not to maintain previous positions, choosing instead to secure gains.
This was a signal to the bears, who have re-entered the market, and now appear ready to send bitcoin closer to a floor at $20,800.
Today, there is a slight hope that today’s selling will abate, as the 14-day relative strength index (RSI) has reached a support level of 44.80.
Ethereum also traded lower on Friday, with the token falling back below $1,700 as sentiment surrounding The Merge event faded slightly.
So far today, Ethereum has fallen to a low of $1,628.17, about $90 below its Thursday high of $1,718.18.
As with bitcoin, Friday’s move comes as ethereum bulls have failed to hold a break of a key price ceiling.
Looking at the chart, the ceiling was the $1,705 point, however bearish traders now seem to be targeting $1,550 support.
The 10-day moving average (red) has now extended its downtrend against its 25-day counterpart (blue), and the RSI has also weakened.
Currently, the index is holding at 45.58, but it appears to be heading for a low at 42.30, which will likely be enough to take control of the index.