Bitcoin was trading near $20,000 to start the weekend, with traders reacting to comments from U.S. Fed Chairman Jerome Powell at the Jackson Hole summit on Friday. Powell warned that “there will be pain ahead” as the Fed tries to bring down the inflation rate. Ethereum was below $1,500 on Saturday.
Bitcoin was trading lower for a second consecutive session, with the token falling below $21,000 to start the weekend.
After a high of $21,804.91, bitcoin closed in on the $20,000 level, falling to an intraday low of $20,020.94.
The move comes as comments from U.S. Fed Chairman Jerome Powell sent shockwaves through global financial markets.
Mr. Powell warned that there would be “pain” in the coming months as the central bank continues its fight against inflation. From a technical perspective, the sell-off started as follows BTC failed to break through its $21,600 resistance level.
Prices then fell below another key level, this time the $20,800 support, en route to today’s low. At the time of writing, the selling has eased slightly, but bitcoin continues to hover around what appears to be a temporary low of $20,200.
Like bitcoin, ethereum also moved lower on Saturday, with the world’s second-largest crypto-currency falling below $1,500.
On Saturday, ETH fell to a low of $1,477.67, which is its weakest point since July 27, a day after prices traded below $1,400. Today’s drop comes as ethereum fell below its long-term support level at $1,550, with bears now targeting a low of $1,450.
Following the downward crossover this week between the 10-day moving average (red) and its 25-day counterpart (blue), many had feared that such a decline might occur.
Price strength also weakened to a multi-week low, with the Relative Strength Index (RSI) at 38.75. Although ETH is currently oversold, the RSI has yet to reach support at 34, and if it does reach that point, we will likely see the token trade below $1,400.