Bitcoin plunged to a two-year low on Wednesday, as the FTX token sell-off continued to weigh on cryptocurrency markets. After an initial 30% slide, FTX token fell by as much as 80%, as Binance confirmed its intention to absorb the failing exchange. Ethereum was also lower, dropping below $1,200.
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 a high of $20,582.24.
This move, which saw prices plummet by as much as 10%, took BTC/USD to its lowest level since November 2020.
As can be seen from the chart, the decline intensified when the token fell below its long-term support level of $19,000.
In addition to this, the 14-day relative strength index (RSI) has also slipped to a floor of its own, which is near the 29.75 level.
BTC has somewhat rebounded from earlier lows, with the token now trading at $17,718.95, with some bulls hoping for a support around $17,900 to be established.
Following a high of $1,564.55 on Tuesday, ETH/USD was down by 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 was trading slightly above $1,000.
Like with bitcoin above, the RSI on this ethereum chart is now tracking at 33.00, which is marginally above a floor of 32.50.
This reading, which is the weakest reading in the last five months, means that prices are now in oversold territory, which long-term bulls believe means that a bottom has been hit.
However, the 10-day (red) moving average continues to fall downward, and should this trend continue, it is likely that ETH will move below $1,000.
Register your email here to get weekly price analysis updates sent to your inbox:
Have we reached a bottom, or will this week’s sell-off intensify? Leave your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.