Bitcoin Falls Below $27,000 Ahead of US Inflation Report
Bitcoin (BTC) dropped for the fifth consecutive day as markets anticipated the release of the US consumer price index (CPI) for last month. BTC/USD hit a low of $26,561.10, just a day after reaching a high of $27,258.45. This recent sell-off has kept Bitcoin near its lowest point since the end of September.
The relative strength index (RSI) on the chart shows support at the 44.00 level, but there has been a slight rebound to 45.28 at the time of writing. This support level may act as a buffer before the inflation report is released, potentially leading to increased volatility in Bitcoin’s price.
Ethereum Plunges to Multi-Week Low
Ethereum (ETH) also experienced a significant drop in price, falling to a multi-week low. After reaching a high of $1,576.40 on Wednesday, ETH/USD hit a bottom at $1,538.26 during the current session. This marks Ethereum’s weakest point since September 11 when it traded below its $1,540 support level.
The bearish momentum is evident from the recent crossover of the 10-day moving average and the 25-day moving average on the chart. The RSI currently stands at 36.88, indicating slightly oversold volumes. Depending on the outcome of the inflation report, this could prompt bullish investors to consider buying the dip in Ethereum.
Hot Take: Bitcoin and Ethereum Face Price Declines Ahead of US Inflation Report
Both Bitcoin and Ethereum have seen their prices drop ahead of the release of the US inflation report. Bitcoin fell below $27,000 and remains near its lowest point in recent weeks. Ethereum also plunged to a multi-week low. The upcoming inflation report is expected to trigger increased volatility in the cryptocurrency market. Investors will be closely watching the outcome of the report to determine their next moves. It remains to be seen whether these price declines are temporary or if they indicate a larger trend in the crypto market.
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