Bitcoin Drops Below $27,000 as US Debt Ceiling Fears Grip Markets

On May 17, Bitcoin dropped under the $27,000 mark as market concern continued due to the ongoing US debt ceiling situation. Before the United States government ran out of money on June 1, Congress was still negotiating the parameters of a potential increase to the ceiling. Also falling, Ethereum surpassed the $1,800 mark.

Bitcoin

Following yesterday’s U.S. Retail Sales report, Bitcoin (BTC) moved below the $27,000 level on Wednesday.

Earlier in today’s session, BTC/USD fell to a low of $26,785.41, following Tuesday’s top of $27,223.07.

As a result of Bitcoin’s inability to surpass its crucial price ceiling at the $27,300 level, a shift towards bearish sentiment has caused today’s sell-off.

The chart shows that the decline also coincided with the 14-day relative strength index (RSI) failing to break its resistance point at 42.00.

Price strength is currently tracking at 38.08 and appears to be moving towards a support area of 36.00 as of this writing.

There is a good chance that BTC might fall below $26,000 should this level be reached.

Ethereum

Along with Bitcoin (BTC), Ethereum (ETH) also trended downward, dropping below $1,800 during today’s session.

Following a high of $1,835.55 on Tuesday, ETH/USD plunged to an intraday low of $1,792.08 earlier in the day.

With today’s price decline, Ethereum was getting closer to its recent week-long low of $1,790, which serves as a long-term floor.

The RSI is inching closer to a floor of its own, which in this case is at the 41.00 level, much like BTC is doing.

Price strength, currently at the 41.97 level, could not breach a resistance zone of 47.00, leading to today’s drop-off.

If the floor around 41.00 holds firm, there is a good likelihood that ETH will reverse course in the next days.

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