Bitcoin exhibited minimal fluctuation this Wednesday, with its moving averages nearing a potential convergence to the upside. For investors seeking optimal entry points, the imminent possibility of a “death cross” is likely occupying their attention. Concurrently, Ethereum appears to be stabilizing around a support level of $1,630.
The consolidation phase for Bitcoin persisted through Wednesday. Market bulls were noticeably absent, even with the looming shadow of a “death cross.”
The expression “death cross” denotes an intersection of moving averages—specifically, the 10-day (represented in red) and the 25-day (depicted in blue) trendlines.
Even with this event on the horizon, the BTC/USD pair recorded a low at $25,628.61, which is only slightly beneath the high point from Tuesday of $25,858.37.
Bitcoin Chart by TradingView
Upon examining the chart, it is evident that price consolidation is coinciding with a stagnating relative strength index (RSI), which is presently hovering around its own support level at 35.00.
While market bulls have so far resisted a downturn below this level, should it transpire, Bitcoin could potentially dip below the $25,000 threshold.
Long-term investors may perceive this as an advantageous condition, facilitating entry at a more favorable price point.
During the day’s trading session, Ethereum (ETH) maintained its proximity to the $1,630 support level, thwarting bearish attempts to instigate a fall below $1,600.
The ETH/USD pair rebounded from its early session low of $1,610.14, subsequently reaching a peak value of $1,635.29.
Mirroring Bitcoin, Ethereum’s 10-day (depicted in red) and 25-day (depicted in blue) moving averages are also on the verge of an upward crossover. However, the asset’s price has yet to exhibit a response to this impending eventuality.
Ethereum Chart by TradingView
At present, Ethereum’s price strength index registers at 36.80, marginally above the foundational level of 36.00. Yet, the real objective for traders likely remains the resistance ceiling of 44.00.
Should market conditions reverse in the days ahead, a surge to this resistance level would be sufficient to propel ETH values beyond $1,700.
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We welcome your insights on the prospects for bullish momentum as the week progresses. Feel free to share your views in the comments section below.