BTC At 2-Year Low, ETH Down 20% As FTX Turmoil Leads To Crypto Bloodbath – Market Updates Bitcoin News
Bitcoin plunged to a two-year low on Wednesday as the FTX token selloff continued to weigh on cryptocurrency markets. After an initial 30% slide, the FTX token fell by as much as 80% as Binance confirmed its intention to absorb the failing exchange. Ethereum was also lower, falling below $1,200.
Bitcoin
Bitcoin (BTC) fell to its lowest level in two years on Wednesday, as markets continued to react to the volatility caused by the FTX/Binance affair.
The world’s largest cryptocurrency plunged to a low of $17,402.55 earlier in today’s session, less than a day after trading at $20,582.24.
This move, which sent prices plunging by as much as 10%, took BTC/USD to its lowest level since November 2020.
As seen in the chart, the decline intensified when the token fell below the long-term support level of $19,000.
In addition to this, the 14-day relative strength index (RSI) has also fallen to a floor of its own, which is near the 29.75 level.
BTC has recovered somewhat from earlier lows, with the token now trading at $17,718.95, with some bulls hoping for a support around $17,900 to become established.
Ethereum
In addition to BTC, ethereum (ETH) also fell significantly in today’s session, as prices fell below $1,200 in the process.
After a high of $1,564.55 on Tuesday, ETH/USD was down as much as 20%, hitting a low of $1,157.23.
This drop saw ETH move to its lowest level since July 14, when the token traded just above $1,000.
As with bitcoin above, the RSI on this ethereum chart is currently at 33.00, which is marginally above a floor of 32.50.
This reading, which is the weakest reading in the past five months, means prices are now in oversold territory, which long-term bulls believe means a bottom has been reached.
However, the 10-day (red) moving average continues to decline, and should this trend continue, ETH is likely to move below $1,000.
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Have we bottomed out, or will this week’s sales intensify? Leave your thoughts in the comments below.
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