Bitcoin Drops Slightly As US Manufacturing Sector Shrinks

On March 2, Bitcoin price dropped into the red as markets reacted to more negative data from the United States. The country’s manufacturing industry contracted for a fourth consecutive month in February, which came as consumer confidence also dropped in the past month. Ethereum was also a bit lower, retracting from March 1 highs.

Bitcoin Price

Bitcoin price (BTC) dropped lower in today’s session, as the markets reacted to news that the US manufacturing industry remained in a contraction zone.

In its monthly report, the ISM’s manufacturing index came at 47.7, and normally any reading below 50.00 indicates a contraction.

Due to that, Bitcoin slid to an intraday low of $23,374.61, which comes barely a day after trading as high as $23,821.17.

The plunge came as the Bitcoin bulls failed to sustain a breakout above a resistance zone of $23,800.

Moreover, the 14-day relative strength index (RSI) has also dropped, after a failed breakout of a ceiling at 55.00. At the time of publication, price strength is tracking at 51.42, which is close to a long-term floor of 50.00.

Ethereum

Ethereum (ETH) also ate into Wednesday’s gains, with the world’s biggest altcoin failing to break a ceiling of its own. After a high of $1672.05 on hump day, ETH/USD plunged to a bottom of $1,635.85 earlier on March 2’s session.

The move happened as Ethereum buyers failed to push the price above resistance at $1,675 during the March 1 rally.

As a result, bears reentered the market and intensified the downside momentum of the 10-day (red) moving average. Today, the trend line is fast approaching its 25-day (blue) counterpart, with a downside cross inevitable.

Moreover, the RSI, which tracks at 51.82, seems to be en route to a floor at 49.00, which might push ETH below $1,600.