Sunday, July 21, 2024

Following the liquidation of Prime Trust, a crypto custodian found to be illiquid by authorities, bitcoin and ethereum experienced notable developments in their respective trends. Bitcoin briefly surpassed the $31,000 mark before consolidating, as traders aimed to secure recent gains. Meanwhile, ethereum faced a decline and slipped below $1,900 once again.

Bitcoin

Bitcoin (BTC) entered a consolidation phase as traders opted to lock in profits after a recent bullish surge.

On Tuesday, BTC/USD broke through a significant resistance level at $30,800 and reached a peak of $31,006.79 towards the end of the previous session.

However, profit-taking orders seemed to have been triggered, causing bitcoin to dip to an intraday low of $30,169.78 today.

Bitcoin chart by TradingView

As mentioned earlier, the relative strength index (RSI) approached a ceiling at 73.00, and it appears that bulls struggled to surpass this point.

Currently, the RSI stands at 66.45, indicating that price strength failed to find support at the 68.00 level.

If this downward momentum persists, it is likely that BTC will drop below $30,000 in the coming days.

Ethereum

In addition, ethereum (ETH) experienced a minor decline on Wednesday, falling below the $1,900 mark once again.

After reaching a peak of $1,911.31 on Tuesday, ETH/USD slipped to a low of $1,850.87 earlier in today’s trading session.

This lower point has previously acted as an interim support level for bullish movements, often leading to subsequent price increases.

Ethereum chart by TradingView

Thus far, this pattern holds true, as the second-largest cryptocurrency is currently trading at $1,862.93.

Ethereum’s price strength is hovering slightly below a support level at 55.00. A potential move above this zone could elevate bullish sentiment.

If such an upward trend resumes, the next target will likely be breaking through the $1,930 resistance level.

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Share your thoughts on the possibility of other crypto custodians facing shutdowns in the comments section below.

Frequently Asked Questions (FAQs) about cryptocurrency consolidation

What caused the consolidation of Bitcoin below $31,000?

The consolidation of Bitcoin below $31,000 was influenced by profit-taking from traders following a recent bullish run and the liquidation of Prime Trust, a crypto custodian found to be illiquid by authorities.

Why did Ethereum fall below $1,900?

Ethereum fell below $1,900 due to a decline in its price and market conditions. The cryptocurrency experienced a minor dip, potentially awaiting bullish momentum to push it back up.

What is the significance of the support and resistance levels mentioned?

Support and resistance levels are important technical indicators in market analysis. The support level acts as a price point where buying pressure may increase, potentially leading to upward price movements. Conversely, resistance levels indicate price points where selling pressure may intensify, potentially causing price declines or consolidations.

Will other crypto custodians face potential shutdowns?

It is uncertain whether other crypto custodians will face potential shutdowns. The liquidation of Prime Trust highlights the importance of liquidity and regulatory compliance for custodial services. It is advisable for custodians to ensure they maintain adequate liquidity and comply with regulatory requirements to avoid similar situations.

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5 comments

MoonLover456 June 29, 2023 - 10:35 am

bitcoin, ethereum, so unpredictable! bulls trying to hold on. resistance levels, support levels, what’s next? exciting times in the crypto world!

Reply
CryptoFan123 June 29, 2023 - 10:40 am

bitcoin consolidates below 31k, bulls securing gains. ethereum falls, waiting for bullish momentum. hope other custodians don’t get shut down! exciting market! wow!

Reply
CryptoWizard June 29, 2023 - 12:07 pm

prime trust liquidation causing ripples. need to be cautious with custodians. let’s learn from this and ensure liquidity! market analysis shows support and resistance levels in play.

Reply
CryptoEnthusiast22 June 29, 2023 - 12:12 pm

bitcoin briefly above 31k, but then profit-taking brings it down. ethereum struggling below 1.9k. will this downtrend continue? hoping for a positive breakout!

Reply
CryptoTrader27 June 29, 2023 - 6:31 pm

btc & eth facing challenges, prime trust liquidation adds uncertainty. bulls need to stay strong. support levels crucial. let’s see if they bounce back soon!

Reply

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