Simon Ng Bitcoin descended below the threshold of $34,000 in today’s trading session, in anticipation of forthcoming data on U.S. consumer sentiment. Thursday’s statistics indicated a 4.9% growth in the U.S. economy for the third quarter, primarily fueled by consumer expenditures. Concurrently, Ethereum also retreated, falling below the $1,800 benchmark to begin the day.
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Bitcoin
The value of Bitcoin dipped under $34,000 this Friday as market players awaited the release of American consumer sentiment metrics.
The BTC/USD pair touched a low of $33,762.32 earlier today, following its ascent to a high of $34,649.40 just a day ago.
This decline has further distanced Bitcoin from its recent peak, reached 18 months ago, signaling a shift towards bearish sentiment in the market.
Data from TradingView’s Bitcoin chart reveals that the Relative Strength Index (RSI) remains in the overbought zone, registering a current reading of 83.68.
Despite the contraction, market bulls appear hesitant to relinquish their positions, subsequently driving the value of Bitcoin back above the $34,000 level.
On the whole, Bitcoin stands nearly 15% higher compared to the same timeframe last week, even accounting for its recent price stabilization.
Ethereum
Similarly, Ethereum (ETH) exhibited a downward trend in today’s market, dropping below the $1,800 threshold.
Following its peak at $1,857.81 on the previous day, the ETH/USD pair plummeted to a low of $1,764.01 earlier in today’s session.
This downturn led to the termination of Ethereum’s seven-day bullish streak, pushing the digital currency away from its recent multi-month high.
As indicated by Ethereum’s chart from TradingView, the RSI failed to break through a resistance level at 74.00 and currently stands at a reading of 71.13.
Investors maintaining their long positions may begin to reevaluate their strategies, particularly if the index declines beneath the 70.00 level.
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Is the market poised for a decrease in momentum this weekend? We invite you to share your perspectives in the comments section below.
Frequently Asked Questions (FAQs) about Technical Analysis of Bitcoin and Ethereum
What is the main focus of this article?
The main focus of this article is to provide a technical analysis of Bitcoin and Ethereum, specifically examining their recent market trends in anticipation of the forthcoming U.S. consumer sentiment report.
What key metrics are considered in the analysis?
The article looks at key metrics such as the Relative Strength Index (RSI) and recent price points to understand the current market sentiment for both Bitcoin and Ethereum.
Why is the U.S. consumer sentiment report important?
The U.S. consumer sentiment report is considered an essential economic indicator that can influence various markets, including cryptocurrencies. The article anticipates the release of this data and examines its potential impact on Bitcoin and Ethereum prices.
What recent trends are observed in Bitcoin?
Bitcoin has recently seen a decline, falling below the $34,000 mark. Despite this, it has maintained a nearly 15% higher value compared to the same period last week. The RSI indicates that the asset is currently overbought, with a reading of 83.68.
What recent trends are observed in Ethereum?
Ethereum also showed a decline, falling below the $1,800 level. It had recently reached a multi-month high but has snapped a seven-day bull run. The RSI for Ethereum stands at 71.13, hovering close to the overbought territory.
What does the article suggest about market sentiment?
The article suggests that both Bitcoin and Ethereum are experiencing a period of market consolidation. While both cryptocurrencies remain relatively higher compared to last week, they have pulled away from their recent peaks, indicating a potential shift towards bearish sentiment.
How can I receive weekly technical analysis updates?
You can register your email address at the end of the article to receive weekly technical analysis reports directly in your inbox.
More about Technical Analysis of Bitcoin and Ethereum
- Understanding Technical Analysis
- What is the Relative Strength Index (RSI)?
- U.S. Consumer Sentiment Reports
- Recent Economic Data Releases
- Bitcoin Price History
- Ethereum Price History
- TradingView Charts
- Cryptocurrency Market Trends
- The Impact of Economic Indicators on Financial Markets
