Bitcoin fell to a two-year low on Wednesday as the FTX token sell-off continued to weigh on the cryptocurrency market. After an initial 30% drop, the FTX token fell as much as 80% as Binance confirmed its intention to absorb the 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 volatility caused by the FTX/Binance event.

The world’s largest cryptocurrency fell to a low of $17,402.55 earlier today before trading as high as $20,582.24 less than a day later.

The move sent prices plunging 10%, sending BTC/USD to its lowest level since November 2020.

BTC/USD – Daily Chart

As can be seen from the chart, the decline intensified when the coin broke below the long-term support at $19,000.

In addition to this, the 14-day relative strength index (RSI) has also fallen to a bottom near 29.75.

BTC has recovered somewhat from earlier lows, with the coin currently trading at $17,718.95, with some bulls looking to establish support around $17,900.

Ethereum

Apart from BTC, Ethereum (ETH) also fell sharply in today’s session as the price fell below $1,200 in the process.

After hitting a high of $1,564.55 on Tuesday, ETH/USD fell 20% to hit a low of $1,157.23.

The drop brought ETH to its lowest level since 14, when the coin was trading just above $1,000.

ETH/USD – daily chart

Like Bitcoin above, the RSI on this Ethereum chart is now tracking at 33.00, just above the 32.50 bottom.

The reading, 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.

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However, the 10-day (red) moving average continues to fall, and if this trend continues, ETH is to drop below $1,000.

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Have we bottomed out, or will this week’s sell-off intensify? Leave your thoughts in the comments below.

Eliman Dan Bell

Eliman brings an eclectic perspective to market analysis, having served as a brokerage director and retail trading educator. Currently, he works as a commentator for various asset classes, including cryptocurrencies, stocks and foreign exchange.




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