Bitcoin fell to a two-week low on Friday, as crypto markets continued to react to the uncertainty surrounding Silvergate. The bank’s solvency has been called into question, with Binance, Coinbase and other exchanges moving to freeze transactions. Ethereum also declined, falling below $1,600 in the process.
Bitcoin
Bitcoin (BTC) fell into the red on Friday as markets reacted to the fallout around Silvergate.
The crypto bank recently announced that it will not be able to file its annual report to the Security and Exchange Committee, hinting at its “ability to continue (operating)”.
BTC/USD slipped to a low of $22,241.78 earlier in the day, after trading as high as $23,540.16 in less than 24 hours.
As a result of this move, bitcoin is now at its weakest position since Valentines Day on February 14.
However, instead of a pool of roses, Friday’s red wave has washed over the markets, leading to a drastic change in prices.
At the time of writing, the Relative Strength Index (RSI) is tracking at 42.91, which is its lowest point since January 1st.
Ethereum
Apart from bitcoin, Ethereum (ETH) also declined significantly in today’s session, falling below the $1,600 mark.
After hitting a high of $1,652.43 on Thursday, ETH/USD fell to a low of $1,553.85 earlier in the day.
Today’s drop has pushed the world’s second-largest cryptocurrency to its weakest level since February 15.
As speculated earlier in the week, a move towards $1,550 was already on the cards, as the 10-day (red) moving average was close to a downside cross with the 25-day (blue) moving average.
The RSI has also contributed to the selloff, with the index falling below the recent support point of 49.00.
Currently, the price strength on ETH is at 44.51, which is slightly above the next support at 44.00.
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Will the Silvergate fallout push crypto prices even lower this weekend? Leave your thoughts in the comments below.
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