Last week, traders were optimistic about cryptocurrencies after their market value surged by almost $100 billion. Yesterday, the price of cryptocurrencies fell with Bitcoin and Ethereum falling by almost five percent each. The two are now trading at $6260 and $420 respectively.
The bid for Bitcoin to reach $7000 continues, however, the recent price declines were not associated with any major news updates. In the past, regulation changes and hacking reports have increased crypto selling pressure. The only significant news yesterday was a report than Israel-based exchange, Bancor, lost $12.5 million worth of Ethers and $1 million of a lesser-known cryptocurrency called Pundi X after cybercriminals exploited its security vulnerabilities.
As Bitcoin declined yesterday, it reached a low of $6185, which was the lowest level since Tuesday last week. The current price is slightly below the 28 and 14-day moving averages with the RSI slightly above the oversold level. The price is also along the important support levels shown below. As such, there is a likelihood that the pair might attract more buyers, which could push it above the $6300 resistance level. If it moves lower, the price will test the important support of $6,000.
