Bitcoin fell into the red on March 2, as markets reacted to more negative data from the United States. The country’s manufacturing sector contracted for the fourth straight month in February, which comes as consumer confidence also fell last month. Ethereum was also lower, pulling back from yesterday’s high.
Bitcoin
bitcoin (BTC) fell lower in today’s session as markets reacted to news that the US manufacturing sector remained in contraction territory.
In his monthly report, the ISM manufacturing index it hit 47.7 and typically any reading below 50.00 indicates a contraction.
As a result of this, BTC/USD fell to an intraday low of $23,374.66, which comes a day after trading at a high of $23,821.15.
![Bitcoin and Ethereum Technical Analysis: BTC Down as US Manufacturing Sector Shrinks Bitcoin and Ethereum Technical Analysis: BTC Down as US Manufacturing Sector Shrinks](https://technicalterrence.com/wp-content/uploads/2023/03/BTC-Edges-Down-as-US-Manufacturing-Sector-Shrinks-–-Market.png)
The drop came as bitcoin bulls were unable to hold a break above a $23,800 resistance level.
Furthermore, the 14-day Relative Strength Index (RSI) has also declined, following a failed break of a top at 55.00
At the time of writing, price strength is at 51.32, which is close to a long-term bottom at 50.00.
Ethereal
ethereal (ETH) also erased gains on Wednesday, as the world’s second-largest cryptocurrency failed to break a top of its own.
Following a high of $1,672.05 on the day of the hump, ETH/USD fell to a bottom of $1,635.85 earlier in the Thursday session.
The move came as Ethereum buyers were unable to push the price above the $1,675 resistance during yesterday’s rally.
![Bitcoin and Ethereum Technical Analysis: BTC Down as US Manufacturing Sector Shrinks Bitcoin and Ethereum Technical Analysis: BTC Down as US Manufacturing Sector Shrinks](https://technicalterrence.com/wp-content/uploads/2023/03/1677766297_778_BTC-Edges-Down-as-US-Manufacturing-Sector-Shrinks-–-Market.png)
As a result, the bears re-entered the market, further intensifying the downside momentum from the 10-day (red) moving average.
Currently, the trend line is fast approaching its 25-day (blue) counterpart, with a downward crossover inevitable.
Adding to this, the RSI, which is still at 51.82, appears to be on its way to a bottom at 49.00, which could push ETH under $1,600.
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