Despite a temporary drop below $30,000, Bitcoin maintained its position around that level on Friday, as traders aimed to sustain a bullish outlook following recent gains. The cryptocurrency quickly rebounded from the dip, thanks to bullish activity. Conversely, Ethereum experienced a decline from its recent high above $1,900.
Bitcoin remained above $30,000, with traders striving to preserve the positive sentiment heading into the weekend.
After reaching a low of $29,679.16 earlier in the day, BTC/USD climbed to a peak of $30,334.40 as the day progressed.
However, the price has retreated from the previous high due to resistance encountered by the 14-day relative strength index (RSI).
Bitcoin chart by TradingView
At the time of writing, the RSI stood at 70.43, slightly below the aforementioned resistance level of 71.00.
Overall, momentum remains bullish, as the 10-day (red) moving average continues to surpass its 25-day (blue) counterpart.
If the RSI manages to surpass the 71.00 level in the upcoming days, there is a strong possibility that BTC will rise above $32,000.
In contrast, Ethereum (ETH) experienced a slight decline in today’s session, retracing from its recent multi-month high.
ETH/USD dropped to an intraday low of $1,866.26, following its peak at $1,908.13 the previous day.
This decline appears to be a result of profit-taking, as bullish traders aimed to secure their gains after a recent upward trend.
Ethereum chart by TradingView
Similar to BTC, traders abandoned their previous positions as the RSI failed to surpass a significant resistance level.
In this case, the resistance was at the 60.00 mark, marking the highest level the index has reached since April.
As of writing, the RSI stands at 59.25, while Ethereum is trading at $1,878.66.
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Share your thoughts on the potential highest point Ethereum could reach this weekend in the comments below.
Frequently Asked Questions (FAQs) about cryptocurrency analysis
What is the current price of Bitcoin?
At the time of writing, Bitcoin is holding above $30,000.
How did traders react to the drop in Bitcoin’s price?
Traders stepped in to buy the dip, aiming to maintain a bullish sentiment following recent gains.
What is the latest price level for Ethereum?
Ethereum is currently trading at $1,878.66.
Why did Ethereum experience a decline?
The decline in Ethereum’s price can be attributed to profit-taking by traders, who sought to secure their recent gains.
What are the key resistance levels for Bitcoin and Ethereum?
For Bitcoin, the resistance level to watch is around 71.00 on the relative strength index (RSI). As for Ethereum, the resistance level was at 60.00 on the RSI.
What are the expectations for Bitcoin and Ethereum in the coming days?
If the RSI for Bitcoin surpasses the 71.00 level, there is a good chance that Bitcoin could rise above $32,000. The future performance of Ethereum will depend on whether it can break through the 60.00 resistance level on the RSI.
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More about cryptocurrency analysis
- Bitcoin Price Chart
- Ethereum Price Chart
- Relative Strength Index (RSI) Explained
- Understanding Bullish Sentiment in Trading
- Profit-Taking Strategies in Cryptocurrency Trading
- Weekly Technical Analysis Reports