Bitcoin fell to a two-week low on Friday as crypto markets continued to react to the uncertainty surrounding Silvergate. The bank’s solvency has been called into question, with Binance, Coinbase, and other exchanges moving to halt transactions. Ethereum was also down, dipping below $1,600 in the process.
Bitcoin
bitcoin (BTC) plunged further into the red on Friday as markets reacted to the fallout surrounding Silvergate.
The crypto bank recently announced that it would not be able to submit its annual report to the Security and Exchange committee, while hinting at its “ability to continue (operating).”
BTC/USD fell to an intraday low of $22,241.78 earlier in the day, less than 24 hours after trading at a high of $23,540.16.
As a result of the move, bitcoin has now fallen to its weakest position since Valentine’s Day, February 14.
Instead of a bunch of roses, however, Friday’s wave of red swept through the markets, causing a big reversal in price strength.
At time of writing, the Relative Strength Index (RSI) stands at 42.91, which is its lowest point since January 1.
Ethereal
In addition to bitcoin, ethereum (ETH) also fell significantly in today’s session, dipping below the $1,600 mark.
After a high of $1,652.43 on Thursday, ETH/USD bottomed out at $1,553.85 earlier in the day.
Today’s drop has brought the world’s second-largest cryptocurrency to its weakest level since February 15.
As projected earlier in the week, a move towards $1,550 was already on the cards, as the 10-day moving average (red) neared a downside crossover with the 25-day moving average (blue).
The RSI has also contributed to the selloff, with the index dipping below a recent support point at 49.00.
Currently, the strength of prices in ETH it is at 44.51, which is marginally above the next support at 44.00.
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Will the fallout from Silvergate drive cryptocurrency prices even lower this weekend? Leave your thoughts in the comments below.
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