Crypto prices tumbled early in the weekend after yesterday’s US inflation report hit a 40-year high of 8.6%. ETH fell to its lowest level in fifteen months, while BTC fell below $29,000.
After days of consolidation, BTC finally moved into Saturday late Friday as crypto prices reacted to the recent inflation report.
Data from the United States showed inflation was at a 40-year high of 8.6%, higher than the 8.3% many had been expecting.
Hence, investors seem to have panicked and in turn liquidated some of their positions in the crypto markets.
BTC/USD fell to an intraday low of $28,911.36 earlier in the weekend, taking prices to their weakest point in almost two weeks.
Despite the decline, prices still remain above support at $28,800, however, some expect the sell-off to intensify over the weekend.
If the 14-day RSI breaks below its current support at 40.50, we could see this expectation come true.
On Saturday, ETH fell to its lowest level in over a year as prices of the world’s second-largest crypto token plummeted.
Earlier in today’s session, ETH/USD fell nearly $300 to hit a low of $1,583.10.
This is the lowest level prices have reached since March of last year and comes as prices broke out of the support at $1,720.
After days of consolidation, price strength also faded with the RSI slightly breaking its 36 bottom.
As of this writing, the indicator is now hovering around 30.96, which is close to a lower support level at 29.30.
As with Bitcoin, some are expecting ETH prices to tumble lower in the coming days, and this bottom in the RSI could be a spot for bears to target.
Why is inflation having such an impact on crypto prices? Leave your thoughts in the comments below.
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