Cryptocurrency markets slumped on Tuesday as investors responded to negative news from the United States. The US manufacturing sector contracted for the fourth consecutive month in February, indicating a drop in consumer confidence.
Bitcoin
Bitcoin (BTC) was hit hardest in the current session as the markets reacted to the news that the US manufacturing sector was still in contraction.
The ISM manufacturing index report for the month of February came in at 47.7. This reading is generally considered to be an indication of contraction, as any number lower than 50.00 is seen as a sign of a declining sector.
BTC/USD dropped to an intraday low of $23,374.66, after trading at a high of $23,821.15 yesterday.
The bulls were unable to push BTC above the resistance level at $23,800, leading to the price drop.
The 14-day Relative Strength Index (RSI) also fell after it failed to break above the 55.00 mark.
At the time of writing, the RSI was at 51.32, close to the bottom at 50.00.
Ethereum
Ethereum (ETH) also saw gains erased Wednesday, as the world’s second-largest cryptocurrency failed to break a top of its own.
ETH touched an intraday high of $1672.05 before falling back to $1,635.85 in the current session.
This move meant that Ethereum buyers were unable to push the price above the $1,675 resistance. As a result, bears entered the market, intensifying the downward momentum from the 10-day moving average (red).
