Cryptocurrency prices plunged in today’s session as markets reacted to the latest US inflation report. Bitcoin fell more than $2,000 in the past 24 hours as consumer prices fell less than expected in the United States. Ethereum was also in the red, with the token dropping below the $1,600 mark.
Bitcoin was trading lower in today’s session as markets continued to react to the latest US inflation report. After a high of $22,673.82 on Tuesday, BTC fell to an intraday low of $20,062.67 earlier today.
Markets were expecting the consumer price index (CPI) for August to come in at 8.1%, down from 8.5% the previous month.
However, with the CPI coming in at 8.3%, traders’ confidence waned, leading to a massive plunge in the cryptocurrency market. Looking at the chart, this selloff took place after a false break of the $22,600 resistance point, with prices now hovering around a key support point.
Currently, BTC is trading at $20,164.21, which is marginally below a low of $20,600.
If the bearish sentiment holds throughout the day, we could potentially see traders aiming for the lower support level of $19,300.
Ethereum also came under a bearish assault, as the token dipped below $1,600 the day before the scheduled start of The Merge event. Less than 24 hours after hitting a high of $1,637.05, the world’s second-largest cryptocurrency fell to a low of $1,564.03 on Wednesday.
ETH’s fall sees the token hit its lowest point from last week, bringing it closer to a long-term low of $1,550.
Bulls have so far resisted a break below this point, and many have opted to step in and buy the current decline. Currently, Ethereum is trading at $1,594.08, with bulls likely hoping to pull prices back above $1,600.
Many still expect ETH to strengthen in the coming days, remaining optimistic about tomorrow’s meltdown, and the long-term implications it may have.
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