Bitcoin, Ethereum Technical Analysis: BTC Drops Below $27,000 as US Debt Ceiling Fears Grip Markets

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Bitcoin fell below the $27,000 level on May 17, as market uncertainty remained high amidst the debt ceiling crisis in the United States. Congress continues to negotiate terms of a potential increase to the limit, before the U.S. government runs out of cash on June 1. Ethereum also dropped, breaking out of the $1,800 level.

Bitcoin

Bitcoin (BTC) moved below the $27,000 level on Wednesday, following yesterday’s U.S. Retail Sales report.

BTC/USD moved to a low of $26,785.41 earlier in today’s session, which was following Tuesday’s peak at $27,223.07.

Today’s sell-off comes as bitcoin was unable to move beyond its key price ceiling at the $27,300 mark, leading to a shift in bearish sentiment.

Bitcoin chart by TradingView

new TradingView.widget(
{
“width”: “100%”,
“height”: “400”,
“symbol”: “BITSTAMP:BTCUSD”,
“interval”: “D”,
“timezone”: “Etc/UTC”,
“theme”: “light”,
“style”: “1”,
“locale”: “en”,
“toolbar_bg”: “#F1F3F6”,
“enable_publishing”: false,
“container_id”: “tradingview_1247e”
}
);

Looking at the chart, the decline also coincided with the 14-day relative strength index (RSI) failing to break its point of resistance at 42.00.

As of writing, price strength is tracking at 38.08, and seems to be heading close to a support zone of 36.00.

Should this point be reached, then there is a strong possibility that BTC could slip below $26,000.

Ethereum

In addition to BTC, ethereum (ETH) also trended lower, falling under the $1,800 level in today’s session.

Following a high of $1,835.55 on Tuesday, ETH/USD plunged to an intraday low of $1,792.08 earlier in the day.

As a result of today’s drop in price, ethereum neared a long-term floor of $1,790, which is where price has retreated to during the past week.

Ethereum chart by TradingView

new TradingView.widget(
{
“width”: “100%”,
“height”: “400”,
“symbol”: “BITSTAMP:ETHUSD”,
“interval”: “D”,
“timezone”: “Etc/UTC”,
“theme”: “light”,
“style”: “1”,
“locale”: “en”,
“toolbar_bg”: “#F1F3F6”,
“enable_publishing”: false,
“container_id”: “tradingview_1247e”
}
);

Similar to BTC, the RSI here is also edging closer to a floor of its own, which in this instance is at the 41.00 point.

Price strength, which is currently at the 41.97 level, was unable to breach a resistance zone of 47.00, leading to today’s drop-off.

There is a good chance that ETH could change course in the upcoming days, providing the floor at 41.00 remains firm.

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What else is behind today’s drop in crypto prices? Leave your thoughts in the comments below.

Credit: Source link

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