On Thursday, just before the forthcoming US inflation data, Bitcoin dropped under the $27,000 mark. It is anticipated that consumer prices increased by 3.6% in September, a 0.1% decrease from the previous month. A multi-week low was reached for Ethereum.
Bitcoin
As markets were ready for the announcement of the U.S. consumer price index (CPI) for last month, Bitcoin (BTC) declined for a fifth day in a row.
Earlier in the day, BTC/USD fell to a low of $26,561.10, less than a day after reaching a high of $27,258.45.
The biggest cryptocurrency in the world is still trading close to its September-end lows following Thursday's sell-off.
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| BTC/USD -- Daily Chart |
Taking a look at the chart, the movement brought the relative strength index (RSI) to a level of support at 44.00.
Since then, price strength has slightly recovered and is currently tracking at 45.28.
Before the inflation data, which can lead to an uptick in volatility, this floor might act as a cushion.
Ethereum
Another cryptocurrency that saw a decline in value was Ethereum (ETH), which hit a multi-week low.
ETH/USD hit a high of $1,576.40 on Wednesday before falling to a low of $1,538.26 earlier in the day.
Because of this, the price of ethereum has now dropped to its lowest level since September 11, when it traded below its $1,540 support level.
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| ETH/USD – Daily Chart |
The downtrend started after the 25-day (blue) and 10-day (red) moving averages recently crossed each other.
The RSI has decreased due to this negative momentum and is currently reading 36.88, which indicates that volumes are just a little bit oversold.
Depending on today's inflation news, this might encourage bulls to think about buying the dip.
Will US inflation decline to 3.6% or less? Post your opinions in the section below.