Less than 24 hours after U.S. President Biden’s executive order, cryptocurrency markets were back in the red, as the global market cap fell by over 5%. Bitcoin was once again trading below $40,000, with ETH hovering marginally above $2,500.
As the smoke clears following yesterday’s executive order, crypto traders seem to be coming to terms with what this announcement could mean for the space long-term.
The world’s largest cryptocurrency is currently down by over 7% on Thursday, wiping out all of yesterday’s gains.
Following Wednesday’s peak of $42,465.67, BTC/USD has so far fallen to an intraday low of $38,832.94 earlier in the session.
This has come as the 14-day RSI has also fallen back below its support of 47.4, after moving to as high as 54.6 only yesterday.
Volatility in price strength shows the degree of market uncertainty that currently exists, as traders seem fearful to hold on to gains, and instead accept profits.
With momentum once again changing, many expect further consolidation in price, which could be confirmed if BTC hits its floor of $37,600 in upcoming sessions.
Wednesday’s gains in ethereum were also wiped out during Thursday’s session, as the world’s second-largest cryptocurrency trades 5.17% lower today.
As of writing, ETH/USD was trading at $2,593.45, and this comes after climbing to as high as $2,756.06 less than 24 hours ago.
ETH has so far fallen to an intraday low of $2,566.19 during Thursday’s session, which is marginally above its long-term floor of $2,550.
This decline to support will likely captivate bears from sustaining recent pressure in hopes of a breakout to the lower level of $2,400.
Should this happen, we may see the RSI move from its current position of 48, to its own floor of 42.
Is it inevitable that we will see further downside moves in ETH? Leave your thoughts in the comments below.