Simon Ng Bitcoin and Ethereum Market Analysis: Bitcoin Consolidation Continues Below $31,000 as Traders Assimilate Recent Economic Data
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.
Bitcoin
During today’s trading session, Bitcoin (BTC) maintained its consolidation below $31,000 as traders continued to process the latest inflation report.
The BTC/USD pair reached an intraday low of $30,228.84 earlier today, following a peak at $30,959.97 the day before.
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.
Ethereum
After briefly surpassing $1,900, Ethereum (ETH) also experienced a decline on Thursday, with a potential moving average crossover imminent.
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.
Overall, the momentum appears bearish, with the 10-day (red) moving average likely to cross over the 25-day (blue) trend line soon.
If this materializes, bears might target an exit point at $1,795.
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Do you think Ethereum will close the week above $1,800? Share your thoughts in the comments section below.
Table Of Contents
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?
A: Market volatility increased following the release of the U.S. inflation report, which showed a two-year low and had an impact on cryptocurrency trading.
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.
Q: Is there a way to receive regular price analysis updates?
A: Yes, you can register your email to receive weekly price analysis reports for cryptocurrencies.
More about cryptocurrency market analysis
- Bitcoin
- Ethereum
- U.S. inflation report
- Cryptocurrency market analysis
- Technical analysis
- Bitcoin price chart
- Ethereum price chart
- Cryptocurrency news
5 comments
bitcoin & ethereum struggling in market, traders digesting economic data, btc consolidating below 31k, eth slips below 1900. Volatility high, inflation report impact. Interesting to see how prices will move.
bitcoin retreated from gains, traders couldn’t break resistance level, inflation report affects market volatility. Eth also dropped, failing to surpass resistance. Bears might exit if moving average trend continues. Price updates anyone?
bitcoin and ethereum facing challenges, btc can’t break 31k, eth below 1900. Resistance levels and inflation report cause ups and downs. How will prices move? Any predictions?
bitcoin and ethereum market analysis, btc consolidation below 31k, eth slipping below 1900. Traders digest economic data, volatility rises after inflation report. Will btc drop below 30k? Let’s discuss eth’s week end close above 1800!
market analysis shows btc consolidating below 31k, eth slipping under 1900. Bulls failed breakout at resistance level, inflation report increases volatility. Could btc dip below 30k? Let’s see if eth closes above 1800 by week end!