BTC approaches $40,000 support on NFP day – Bitcoin News Market Updates
After three consecutive sessions of declines, BTC was rapidly approaching its $40,000 support level on Friday as markets braced for the February nonfarm payrolls report. This happened as ETH also fell and is approaching its own low of $2,500 in the process.
BTC bulls have been rare over the past few days as the world’s largest cryptocurrency faced mounting pressure from bears.
This pressure came after Tuesday’s rise to the $45,000 resistance level, which then triggered an attack from short sellers, who entered the market.
At the time of writing, BTC is down nearly 6% on the day and is currently trading at $40,845.52, with the 14-day RSI trailing at 49.5.
Looking at the chart, BTC now appears to be heading towards support, which sits at $40,056, with the RSI heading towards its own floor at 47.
The 25-day medium-term moving average (in blue) also appears to have reversed course once again, with downward momentum.
As of now, this downside pressure seems to inevitably drive prices to the floor. However, once there, market uncertainty could potentially kick in.
Similar to bitcoin, ETH is also down for a third straight day, with the price of the world’s second largest crypto down 7% at the time of writing.
Earlier in today’s session, ETH/USD hit an intraday high of $2,891.03, but those gains were short-lived, and Ethereum is now trading at $2,702.07.
This is slightly higher than today’s low of $2,680.50, but as Friday’s session closes in, many expect further price declines.
The $2,550 floor appears to be the target of the bears, which have been firmly present since prices are trading at the $3,000 resistance point.
Price strength has also moved into oversold territory, with the 14-day RSI tracking at 44.8. At first glance, however, level 39 might be a realistic floor.
Could we see prices drop further before the weekend? Leave your thoughts in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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