NEWSLETTER
Bitcoin consolidated on January 16, when US markets closed in celebration of the Martin Luther King Jr. Day holiday celebration. Traders have apparently moved to lock in recent gains, after the cryptocurrency further largest in the world to rise above $21,000 for the first time since November. Ethereum also pulled back from the recent highs in today’s session.
Bitcoin
bitcoin (BTC) consolidated to start the week as prices failed to break a key resistance level.
After a high of $21,345.25 on Sunday, BTC/USD fell to an intraday low of $20,681.98 earlier in today’s session.
This drop comes as the world’s largest cryptocurrency failed to break above its long-term ceiling of $21,400.
Looking at the chart, this was somewhat expected, given the 14-day RSI hovering in overbought territory.
At time of writing, price strength is currently at 86.65, after failing to move north of the 90.00 mark.
More dips are likely on the cards this week, with a $20,000 floor a potential target for sellers.
Ethereal
In addition to BTCethereal (ETH) also pulled back from recent highs, which comes after a failed breakout of its own.
ETH/USD fell to a low of $1,529.79 today, which comes after trading as high as $1,579.48 on Sunday.
Ethereum failed to sustain a move above the $1580 ceiling, giving way to a resurgence of some bearish sentiment.
As with bitcoin, ethereum prices were significantly overbought, with the index at its highest point since January 2021.
Now tracking at 83.46, the next visible bottom looks to be at the 70.00 mark, which if hit I could see ETH trading near $1,475.
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image credits: Shutterstock, Pixabay, Wiki Commons
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