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Crypto on a rollercoaster ride: Bitcoin and Ethereum plummet amidst US debt ceiling crisis


In short: Bitcoin fell below $27,000 due to market uncertainty surrounding the debt ceiling crisis in the United States. Ethereum also dropped breaking out of the $1,800 level. The decline coincided with Bitcoin being unable to move beyond its key price ceiling at the $27,300 mark, leading to a shift in bearish sentiment. The relative strength index (RSI) for both cryptocurrencies are approaching a support zone, increasing the possibility of further drops in price.

Our quick analysis:
As if crypto investing wasn't volatile enough, today's market uncertainty has hit Bitcoin and Ethereum hard. With the US government potentially running out of cash by June 1 due to the ongoing debt ceiling crisis, it's no wonder investors are on edge.

Bitcoin dropped below the $27,000 level with a low of $26,785.41 earlier today. Looks like it's time to bid farewell to that coveted $27,300 mark - at least for now. The 14-day RSI failed to break its point of resistance at 42.00, leading to a bearish shift in sentiment. Price strength is tracking at 38.08 and is heading towards a support zone of 36.00. Brace yourselves - if BTC falls below $26,000, we may need to get our vomit bags ready.

Ethereum didn't fare any better, falling under the $1,800 level in today's session. The high of $1,835.55 on Tuesday was short-lived, with ETH/USD plunging to an intraday low of $1,792.08. The RSI is also edging closer to its own floor at the 41.00 point, with price strength at 41.97 unable to break a resistance zone of 47.00. This has caused ETH to near a long-term floor of $1,790, which it has retreated to in the past week.

What's next for crypto in the midst of this market uncertainty? Who knows. Maybe it's time to invest in those vomit bags. Leave your thoughts in the comments below - we could all use a bit of moral support during this bumpy ride.

Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.

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