Bitcoin and Ethereum Technical Analysis: BTC Retraces Recent Gains amid Disappointing US GDP Figures
On Thursday, Bitcoin experienced a renewed downward movement as traders opted to secure gains following a surge on Tuesday. The most recent decline was a direct response to data that unveiled a subpar growth rate for the United States’ gross domestic product in the second quarter. Similarly, Ethereum encountered a dip, slipping below the $1,700 mark.
Bitcoin saw its value decrease for a consecutive second session, as a combination of profit collection and a prevailing pessimistic market sentiment exerted downward pressure on its price.
After reaching its peak at $27,490.77 on Wednesday, the BTC/USD pair plummeted to an intraday low of $27,069.21 earlier today.
This decline occurred just a few days subsequent to Bitcoin’s climb above $28,000, which followed Grayscale’s legal victory over the Securities and Exchange Commission (SEC).
Analyzing the technical aspects, this downward movement aligned with the 14-day relative strength index (RSI) failing to breach its resistance level at 53.00.
At the time of writing, the RSI stands at 47.50, with the next visible support level situated at 43.00.
If market momentum continues to push the price towards this threshold, the likelihood of it dropping below $27,000 becomes significant.
Additionally, Ethereum (ETH) encountered a decline on Thursday, with its price descending below the $1,700 threshold.
The ETH/USD pair touched a low of $1,697.15 earlier today, a drop that followed a high of $1,721.62 registered the previous day.
Much like Bitcoin, this decline seems to stem from profit-taking activities, a reaction to Ethereum’s notable surge to a multi-week high on Tuesday.
To sustain the bullish momentum from earlier in the week, a breakout above the 49.00 level on the RSI needs to transpire.
At present, the RSI reads 45.65, while the price has managed to recover above the $1,700 mark.
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Do you anticipate the current momentum to persist in the upcoming days? Share your insights in the comments section below.