On Thursday, Bitcoin retraced from its recent gains as traders struggled to sustain a breakthrough past a critical resistance level. Increased market volatility followed the release of the U.S. inflation report, which revealed a two-year low. Meanwhile, Ethereum experienced a slight decline, slipping below the $1,900 mark.
This decline occurred when bulls failed to maintain a breakout above the crucial resistance level at $30,800.
BTC/USD – Daily Chart
Examining the chart, this coincided with the 14-day relative strength index (RSI) failing to surpass its own ceiling at 61.00.
Currently, the index stands at 59.30, and if momentum continues to decline, it could potentially reach a floor of 55.00.
If this scenario unfolds, there is a strong possibility that Bitcoin may drop below $30,000.
Following a high of $1,901.15 on Wednesday, the ETH/USD pair fell to a low of $1,864.50 earlier today.
Similar to Bitcoin, this drop occurred as Ethereum slipped below the recent resistance level of $1,890 and approached a floor at $1,850.
ETH/USD – Daily Chart
One of the contributing factors was the RSI’s inability to surpass the ceiling at 53.00. Currently, it hovers around 52.56.
If this materializes, bears might target an exit point at $1,795.
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Frequently Asked Questions (FAQs) about cryptocurrency market analysis
Q: What is the current status of Bitcoin in the cryptocurrency market?
A: Bitcoin is currently consolidating below the $31,000 level as traders analyze the latest economic data and market conditions.
Q: Why did Bitcoin retreat from recent gains?
A: Bitcoin experienced a retreat due to traders’ inability to sustain a breakout above a key resistance level at the $30,800 zone.
Q: What caused increased market volatility?
Q: How did Ethereum perform in the market?
A: Ethereum slipped below the $1,900 mark and experienced a decline, driven by factors such as failing to move past a resistance level and a potential moving average crossover.
Q: What are the potential price levels to watch for Bitcoin and Ethereum?
A: For Bitcoin, if momentum continues to slip, there is a possibility of moving below $30,000. In the case of Ethereum, bears could target an exit point at $1,795 if the 10-day moving average crosses the 25-day trend line.
More about cryptocurrency market analysis
- U.S. inflation report
- Cryptocurrency market analysis
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- Bitcoin price chart
- Ethereum price chart
- Cryptocurrency news