Bitcoin and Ethereum prices fell on Thursday as U.S. retail sales figures came in lower than expected.
• Bitcoin dropped below the $21,000 mark, hitting an intraday low of $20,541.54, while Ethereum fell to a five-day low of $1,509.42.
• The RSI is currently hovering close to a floor at 70.00, indicating that a further drop in prices may be imminent.
Cryptocurrency markets were sent into a downward spiral on Thursday as the U.S. retail sales figures came in lower than expected. Bitcoin (BTC) fell below the $21,000 mark and Ethereum (ETH) dropped to a five-day low, as both digital assets reacted to the news.
The U.S. retail sales figures released on Thursday showed a 1.1% decrease in December, which was lower than the 0.4% drop that had been predicted. The news sent shockwaves through the cryptocurrency markets, with BTC/USD hitting an intraday low of $20,541.54 and ETH/USD dropping to $1,509.42. These prices are the lowest the two digital assets have seen since Saturday.
In terms of technical analysis, the 14-day relative strength index (RSI) of Bitcoin is currently at 78.40, which is marginally above a floor at the 77.00 mark. A move below this point would likely see Bitcoin bearish sentiment take the upper hand and push prices towards the $20,000 zone. Ethereum’s RSI is also hovering close to a floor at 70.00, signaling that a further drop in prices may be imminent.
Overall, the U.S. retail sales figures have caused a momentary dip in cryptocurrency prices. Nevertheless, the long-term outlook for both Bitcoin and Ethereum remains positive, with investors still optimistic about the future of the digital asset class.