The cryptocurrency market shifts uneasily as leading digital currencies like Bitcoin and Ethereum continue to plummet

This week saw a dramatic 15% drop in Bitcoin, raising fears among investors about whether these declines signify a temporary lull or the onset of a more extended downturn.

The cryptocurrency market continues to shift uneasily as leading digital currencies like Bitcoin and Ethereum saw further declines this week.

Bitcoin dropped 15% to trade around the $81,000 mark, raising concerns among investors about whether these declines could trigger a more significant downturn.

Bitcoin price drops

Bitcoin price slipped further on Thursday, extending losses for a fourth straight session as bearish sentiment pressured the cryptocurrency.

Bitcoin trades lower

Bitcoin is now trading at levels last seen in early August, casting shadows over the once-radiant crypto market.

However, there are glimmers of hope as Bitcoin’s Relative Strength Index (RSI) drags below oversold conditions, hinting at a potential recovery in the coming days.

Despite this, oversold levels persistently tempt the bears, who are eyeing a move towards the next support at $73,000.

Bitcoin’s RSI

Bitcoin’s RSI on the 14-day chart is currently showing oversold conditions, which could indicate that the cryptocurrency is due for a rebound.

However, the RSI has remained below the oversold level for the past three days, which suggests that the bears may continue to exert pressure on Bitcoin in the short term.

Bitcoin price action

Bitcoin prices have been highly volatile in recent weeks, with the cryptocurrency surging to new all-time highs above the $94,000 mark last week.

However, this rally has stalled, and Bitcoin prices have pulled back sharply this week.

This selloff comes as investors grow increasingly concerned about the pace of the U.S. economic recovery and the potential for more interest rate hikes from the Federal Reserve.

If the Fed raises interest rates too quickly, it could slow economic growth and lead to a recession. This scenario could put further downward pressure on Bitcoin prices.

On the other hand, if the Fed keeps interest rates low for too long, it could lead to inflation. High inflation erodes the purchasing power of consumers and could ultimately lead to a market downturn.

Bitcoin is often seen as a hedge against inflation, so if inflation rises rapidly, we could see renewed demand for Bitcoin.

This scenario could help to stabilize Bitcoin prices and set the stage for the next bull market.

Key takeaways

• Major cryptocurrencies like Bitcoin, Ethereum, and Ripple saw significant price drops this week.

• Bitcoin dropped 15% to trade around the 81,000 support level.

• If Bitcoin drops below the 73,000 support, it could continue to decline toward the 62,0018 levels.

• Bitcoin’s RSI showed oversold conditions, which could indicate an upcoming recovery.

• Crypto traders observed the lack of immediate buying interest despite RSI readings.

• Investors await the next support and resistance levels to guide trading strategies.

Crypto market trends

The cryptocurrency market is known for its volatility, and we’ve seen some dramatic price swings overnight.

As of late morning on Thursday, Bitcoin was down 15% from the prior week, while Ethereum had slid nearly 24% since last Friday.

This downturn comes after a strong rally that saw Bitcoin soar above the $94,000 mark last week for the first time in history.

However, this rally stalled last Friday, setting the stage for the current selloff.

Bitcoin price drops

Bitcoin prices slipped further on Thursday, extending losses for a fourth straight session as bearish sentiment pressured the cryptocurrency.

Bitcoin trades lower

Bitcoin is now trading at levels last seen in early August, casting long shadows over the once radiant crypto market.

However, there are glimmers of hope as Bitcoin’s Relative Strength Index (RSI) drags below oversold conditions, hinting at a potential recovery in the coming days.

Despite this, oversold levels persistently tempt the bears, who are eyeing a move towards the next support at $73,000.

Bitcoin’s RSI

Bitcoin’s RSI on the 14-day chart is currently showing oversold conditions, which could indicate that the cryptocurrency is due for a rebound.

However, the persistence of these oversold levels suggests that the bears may continue to exert pressure on Bitcoin in the short term.

Bitcoin price action

Bitcoin prices have been highly volatile in recent times, with the cryptocurrency surging to new all-time highs above the $94,000 mark last week.

However, this rally has stalled, and Bitcoin prices have pulled back sharply this week.

This selloff comes as investors grow increasingly concerned about the pace of the U.S. economic recovery and the potential for more interest rate hikes from the Federal Reserve.

If the Fed raises interest rates too quickly, it could slow economic growth and lead to a recession. This scenario could put further downward pressure on Bitcoin prices.

On the other hand, if the Fed keeps interest rates low for too long