Bitcoin dropped to a two-week low on Friday, as crypto markets continued to react to the uncertainty surrounding Silvergate. The solvency of the bank has been put into question, with Binance, Coinbase and other exchanges moving to halt transactions. Ethereum also edged lower, falling below $1,600 in the process.
Bitcoin (BTC) plunged further into the red on Friday, as markets reacted to fallout surrounding Silvergate.
The crypto bank recently announced that it wouldn’t be able to file its annual report to the Security and Exchange committee, whilst hinting at its “ability to continue (operating).”
BTC/USD slipped to an intraday low of $22,241.78 earlier in the day, less than 24 hours after trading at a high of $23,540.16.
As a result of the move, bitcoin has now fallen to its weakest position since Valentines day, on February 14.
However, instead of a pool of roses, Friday’s red wave has washed through the markets, leading to a huge shift in price strength.
At the time of writing, the relative strength index (RSI) is tracking at 42.91, which is its lowest point since January 1.
In addition to bitcoin, ethereum (ETH) also significantly fell in today’s session, dropping below the $1,600 mark.
Following a high of $1,652.43 on Thursday, ETH/USD moved to a bottom at $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 projected earlier in the week, a move towards $1,550 was already on the cards, as the 10-day (red) moving average neared a downwards cross with the 25-day (blue) moving average.
The RSI has also contributed to the sell-off, with the index falling below a recent support point at 49.00.
Currently, price strength on ETH is at 44.51, which is marginally 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.