On September 19, the price of Bitcoin (BTC) makes a foray below $19,000. Already, last week was a very difficult week to cash in on for many crypto investors. Indeed, Bitcoin and Ethereum are giving up ground from their summer highs. Not only would the former be about to break through a critical support. Ethereum was also down, hitting a multi-month low itself.
Bitcoin fell to a four-month low to start the week, as bearish sentiment remains high in the crypto markets. In that sense, it is moving away from levels that would allow buyers to regain control over sellers. Especially since the latter are noting that the downside potential would become non-negligible in case of a break of the $20,000 support in weekly units.
BTC slipped to an intraday low of $18,390.32 earlier in the day, which comes after a break of a low at $18,645.
The decline saw bitcoin hit its weakest point since June 18, which was the last time this support level was also broken. Does this drop below $19,000 herald an upcoming return to $20,000, just like when Bitcoin revisited the $18,000 – $19,000 area on September 6, before starting a strong bullish rebound afterwards? Or is a close below $19,000 necessary to replicate that pattern?
However, many believe this drop comes ahead of this week’s US Federal Open Market Committee meeting, where an interest rate hike is expected.
Ethereum, bear attempt to push below $1,000?
Despite The Merge going pretty well, last weekend was a tricky one for Ethereum. Indeed, since then, prices have fallen considerably, with the September 19 drop taking the token to a low of $1,287.42.
This drop comes less than a week after the world’s second largest crypto-currency traded above $1,700.
Some believe we could yet see further slippage as bears attempt to push ethereum below $1,000.
Like it or not, bear market rallies in Bitcoin and Ethereum are becoming more and more imminent as their prices approach their lows for the year.
With the FED set to raise rates by 75 basis points the day after tomorrow, in light of inflation struggling to slow, this would basically be a headwind to a favorable reversal in BTC and ETH prices. Or in the other direction, a catalyst for sellers to break through the $20,000 and $1,000 supports respectively.