Profit-taking activities in Bitcoin were evident this past Wednesday, causing the digital currency to retract from a recent high exceeding $35,000. This downward movement comes as investors keenly await a forthcoming speech by Jerome Powell, the Chair of the Federal Reserve. Concurrently, Ethereum also registered a decrease, slipping below the $1,800 threshold.
On Wednesday, market participants seemed to opt for locking in gains, leading to a subdued trading performance for Bitcoin.
The BTC/USD currency pair reached an intraday nadir of $33,278.40 late in the previous session, after initially soaring beyond the $35,000 landmark.
While bullish investors have managed to lift the digital asset back to a current price of $34,246.74, it is still trading under levels observed on the preceding day.
Bitcoin chart provided by TradingView
One factor contributing to this situation is the Relative Strength Index (RSI), which exhibited significantly overbought conditions on Tuesday, registering approximately 89.00.
At present, the index stands at 87.22, a slight decrement but still indicative of imminent reversal potential.
The market is cautiously awaiting Powell’s speech today, which could act as a catalyst for either amplifying the existing upward trajectory or precipitating further sell-offs.
Ethereum (ETH) fell below the $1,800 mark on Wednesday, thereby breaking its six-day streak of gains.
After achieving a high of $1,852.68 in the prior session, the ETH/USD pair descended to an earlier low of $1,758.69.
The digital asset has experienced a modest recovery since, currently trading at $1,784.57, a reduction of over 3% from its peak on Tuesday.
Ethereum chart provided by TradingView
Nevertheless, market sentiment largely remains optimistic, as evidenced by the 10-day (red) moving average maintaining its ascent when compared to its 25-day (blue) equivalent.
Despite the Ethereum RSI also being in the overbought territory, currently surpassing 70.00, bullish actors in the market may strive to propel the asset beyond the $1,900 level in the ongoing cycle.
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What implications could Powell’s speech today hold for cryptocurrency valuations? Share your insights in the comments section.
Frequently Asked Questions (FAQs) about Bitcoin and Ethereum Technical Analysis
What is the main focus of the article?
The main focus of the article is to provide a technical analysis of Bitcoin and Ethereum, particularly in light of recent price movements and the upcoming speech by Federal Reserve Chair Jerome Powell.
Why did Bitcoin’s price retract from its recent high?
Bitcoin’s price retracted from its recent high exceeding $35,000 due to profit-taking activities among traders. This move comes as market participants await the forthcoming speech by Jerome Powell.
What impact did the Relative Strength Index (RSI) have on Bitcoin’s price?
The RSI for Bitcoin was significantly overbought, tracking around 89.00, which could be indicative of a potential price reversal. The index has slightly decreased to 87.22 but still remains in overbought territory, suggesting the market is primed for a possible reversal.
Why did Ethereum also experience a price decline?
Ethereum retreated below the $1,800 mark, breaking its six-day winning streak. This decline appears to align with the overall market trend, which also saw Bitcoin retract from its recent highs.
What is the current market sentiment for Ethereum?
The market sentiment for Ethereum largely remains positive, despite the price drop. This is evidenced by the 10-day (red) moving average maintaining its upward trajectory when compared to its 25-day (blue) counterpart.
How could Jerome Powell’s upcoming speech impact cryptocurrency prices?
While the article does not make predictions, it suggests that Jerome Powell’s forthcoming speech could act as a market catalyst. The speech could either amplify existing momentum or precipitate further sell-offs in both Bitcoin and Ethereum.
How can readers stay updated on future technical analyses?
Readers can register their email to receive comprehensive weekly technical analysis reports directly in their inbox.
More about Bitcoin and Ethereum Technical Analysis
- Bitcoin Technical Analysis Guide
- Understanding Ethereum
- Federal Reserve and Cryptocurrency
- What is Relative Strength Index (RSI)?
- TradingView Charts Explained
- Market Sentiment in Cryptocurrency
- Impact of Speeches on Financial Markets