Jamal Al-Farouq Bitcoin plummeted to a quarter-low, breaching the $25,000 threshold as Monday’s trading session drew to a close, signaling increased bearish sentiment at the beginning of the week. However, it has since recovered and is currently stabilizing slightly above the $26,000 mark. Concurrently, Ethereum also experienced a downturn, plunging to its most diminished value since March.
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Bitcoin
Bitcoin’s valuation descended to a 90-day trough, falling beneath the $25,000 marker late in Monday’s trading period.
The BTC/USD currency pair hit a low point of $24,930.30, marking its lowest valuation since June 15 as the week commenced.
Subsequent to this decline, the cryptocurrency has seen a resurgence, with its value briefly touching $26,258.05 earlier today.
BTC/USD – Daily Technical Chart
Upon examination of the daily chart, it is evident that the decline was precipitated when the 14-day Relative Strength Index (RSI) temporarily slipped below the support level of 35.00.
Bullish investors have subsequently re-engaged with the market, capitalizing on the downturn to purchase at lower rates. This action has elevated the current RSI to a reading of 46.50.
The forthcoming resistance level seems to be situated at an RSI of 52.00. Should the price strength attain this level, it is likely that BTC will surpass the $26,500 marker.
Ethereum
Ethereum (ETH) also witnessed a surge in market volatility over the last 24 hours, culminating in a considerable dip.
During the course of yesterday’s trading, ETH/USD plummeted to a low of $1,533.43 before experiencing a rebound. It is now hovering at approximately $1,619.11.
This decline has resulted in Ethereum dropping to its lowest valuation since March 12, where the price was below the $1,500 level.
ETH/USD – Daily Technical Chart
The chart indicates that Ethereum’s RSI has ascended from an oversold status, now registering a reading of 41.52.
This reading is slightly above the resistance ceiling of 41.00, with the short-term bullish target seemingly set at an RSI level of 50.00.
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What are your insights into the volatility experienced today? Please share your perspectives in the comments section below.
Frequently Asked Questions (FAQs) about Bitcoin and Ethereum Technical Analysis
What cryptocurrencies are the focus of this technical analysis?
The technical analysis focuses on Bitcoin (BTC) and Ethereum (ETH), which are among the world’s largest cryptocurrencies by market capitalization.
What key levels were observed for Bitcoin’s recent price movements?
Bitcoin fell below the $25,000 mark and reached a 90-day low of $24,930.30. However, it rebounded to a level slightly above $26,000. The next point of resistance appears to be at an RSI of 52.00, which corresponds to a price likely above $26,500.
What were Ethereum’s recent price trends?
Ethereum plunged to a multi-month low of $1,533.43 before rebounding to around $1,619.11. This was Ethereum’s lowest level since March 12, when the price was under $1,500.
What is the significance of the 14-day Relative Strength Index (RSI) in this analysis?
The 14-day RSI is used to indicate overbought or oversold conditions. For Bitcoin, the RSI temporarily dropped below 35.00, indicating an oversold condition before rebounding to 46.50. For Ethereum, the RSI moved from an oversold zone to a current level of 41.52.
What is the next visible point of resistance for both cryptocurrencies?
For Bitcoin, the next visible point of resistance appears to be at an RSI level of 52.00, potentially corresponding to a price above $26,500. For Ethereum, the short-term bullish target appears to be set at an RSI level of 50.00.
What does ‘buying the dip’ mean in this context?
‘Buying the dip’ refers to the strategy employed by investors who purchase assets when prices are low with the expectation that they will rise again. In this case, bullish investors capitalized on Bitcoin’s and Ethereum’s low prices to re-enter the market.
How can readers stay updated on future price analysis?
Readers can register their email to receive a Weekly Technical Analysis Report, which will provide updates on price trends and movements for various cryptocurrencies.
What is the intended audience of this technical analysis?
The technical analysis is intended for serious business people, investors, and traders who are interested in understanding the volatility and price movements of Bitcoin and Ethereum.
More about Bitcoin and Ethereum Technical Analysis
- Bitcoin Price Charts
- Ethereum Price Analysis
- Understanding Relative Strength Index (RSI)
- Cryptocurrency Market Volatility Explained
- Investing Strategies: Buying the Dip
- Weekly Cryptocurrency Reports Sign-Up
- Historical Price Movements of Bitcoin
- Historical Price Movements of Ethereum
8 comments
Excellent analysis, although I’d have liked to see more on potential external factors. What about govt regulations, any updates on that?
thnx for the deep dive into the RSI numbers. really helps to understand what’s actually goin on rather than just panicking lol
Solid article! Very comprehensive but could use some tips on how to capitalize on these market conditions.
Wow, BTC and ETH are like a rollercoaster these days, huh? was getting a bit worried when it dropped below 25k. Good to see its picking back up.
Interesting stuff, but i’ve seen different resistance levels on other sites. What gives?
where do you guys get your data, especially RSI? Seems a little diff than what I usually see.
Great technical analysis. It’s always better to have data to back up decisions rather than speculating. Keep up the good work.
Y’all think its gonna keep going up? I’m still kinda new to this but don’t wanna miss out on the action.