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Following strong retail sales data, Bitcoin and Ethereum decline as USD strengthens
November 17, 2022
Key points:
- Retail sales rose more than expected in October at 1.3%, beating expectations for a 1% increase.
- Bitcoin's 10-day moving average appears to have exhausted its downside momentum and a reversal in sentiment is possible. If the RSI (relative strength index) is about to bottom out at 34.00, we could see BTC bulls start buying the current dip.
- ETH’s moving average still appears to be trending down, which may prevent many bears from entering the market now. The RSI is hovering around 38.00 here and if this holds, we could see the start of a rally.
Bitcoin fell for a second day in a row as markets continued to digest the latest U.S. retail sales data. Sales rose more than expected in October at 1.3%, beating expectations for a 1% increase. The result boosted market confidence in an imminent change in policy from the Fed. Ethereum dipped below $1,200 in today's session.
Bitcoin
Bitcoin fell for a second day in a row as the market continued to react to the latest U.S. retail sales report.
BTC/USD fell to a low of $16,430.11 earlier today following a better-than-expected surge in consumer spending.
The drop comes a day after the coin peaked at $16,726.44, but it now appears to be heading toward its most recent price floor.
Looking at the charts, this support appears to be at the $16,200 level, which was the last line of defense before the coin fell below $16,000 over the past few days.
On the positive side for the long-term bulls, the 10-day moving average (in red) appears to have exhausted its downside momentum and a reversal in sentiment is possible.
If the relative strength index (RSI) is about to bottom out at 34.00, we could see BTC bulls start buying the current dip.
Ethereum
Besides Bitcoin, Ethereum also tumbled in today's trading, with the price dropping below $1,200.
The world's second-largest cryptocurrency fell about 2 percent on Thursday to a low of $1,189.21.
The drop saw ETH/USD break the recent bottom, with the next visible support at $1,105.
Unlike BTC, ETH’s moving average still appears to be trending down, which may prevent many bears from entering the market now.
Currently, the RSI is hovering around 38.00 here and if this holds, we could see the start of a rally.
However, if there is a breakout, we could see Ethereum fall below $1,100.
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