Carlos Fernandes Bitcoin withdrew from its recent peak on Tuesday as it entered an overbought condition, prompting traders to liquidate positions for short-term gains. Concurrently, Ethereum’s value fell below the $1,700 threshold.
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Bitcoin
During today’s trading session, Bitcoin (BTC) descended below the $28,000 mark as market participants aimed to realize the profits accumulated on Monday.
Having initially reached a high of $28,494 at the onset of October, the BTC/USD pair subsequently declined to an intraday low of $27,374.
This downturn followed Bitcoin’s ascent to its highest value since August 17; however, the same upward momentum contributed to its eventual decline.
BTC/USD – Daily Chart Analysis
The decline is attributable to Monday’s trading activity, which propelled the 14-day Relative Strength Index (RSI) past the overbought threshold of 70.00.
As of this writing, the RSI is gauged at 59.93, which hovers slightly above the support level of 57.00. Should this support be breached, it is highly probable that BTC may fall below the $27,000 mark in the subsequent days.
Ethereum
Similar to Bitcoin, Ethereum (ETH) suffered from the day’s trend of profit-taking, causing its price to retreat below the $1,700 level.
On Tuesday, the ETH/USD pair plummeted to an intraday low of $1,646.08, not long after achieving a seven-week high of $1,733.51.
This downturn seems to be a consequence of Ethereum investors failing to sustain a rally beyond the resistance level of $1,730.
ETH/USD – Daily Chart Analysis
A review of the daily chart indicates that the recent sell-off wiped out gains accumulated over the previous three days. This occurred as the RSI dipped below a critical support level of 60.00.
At present, the world’s second-largest cryptocurrency by market capitalization is trading at $1,656.73 and is approaching a support level of $1,620.
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What are your thoughts on Ethereum reaching the aforementioned support level in the days to come? Share your insights in the comments section.
Frequently Asked Questions (FAQs) about Technical Analysis of Bitcoin and Ethereum
What is the main focus of the article?
The main focus of the article is to provide a technical analysis of Bitcoin and Ethereum, detailing the recent price declines for these cryptocurrencies. The analysis explores contributing factors such as traders locking in short-term gains and various technical indicators like the Relative Strength Index (RSI).
What technical indicators are mentioned in the article?
The article mentions the 14-day Relative Strength Index (RSI) as a key technical indicator for both Bitcoin and Ethereum. It examines how the RSI levels have influenced recent price movements and what they may signify for the future.
Why did Bitcoin and Ethereum experience a downturn?
The article attributes the recent downturn in Bitcoin and Ethereum prices to market participants taking profits after the cryptocurrencies reached recent highs. For Bitcoin, the RSI exceeded the overbought threshold of 70.00, and for Ethereum, investors were unable to sustain a rally beyond a resistance level.
What are the potential support levels for Bitcoin and Ethereum?
For Bitcoin, the article identifies a potential support level at 57.00 on the RSI and a price floor of $27,000. For Ethereum, a critical support level on the RSI is identified at 60.00, and a price floor is mentioned at $1,620.
What does the article suggest about future price movements?
While the article does not make explicit predictions, it outlines that if the mentioned support levels are broken, both Bitcoin and Ethereum could experience further declines in their respective values.
How can I stay updated on future technical analyses?
The article provides an option to subscribe to a weekly technical analysis report, offering a comprehensive summary of significant cryptocurrency updates. Readers can register their email addresses to receive this digest.
More about Technical Analysis of Bitcoin and Ethereum
- Technical Indicators Explained
- Understanding the Relative Strength Index (RSI)
- Basics of Cryptocurrency Market Trends
- Guide to Support and Resistance Levels in Cryptocurrency Trading
- Profit-Taking in the Cryptocurrency Market: A Primer
- Weekly Technical Analysis Report Subscription
- Overview of Bitcoin’s Recent Price History
- Overview of Ethereum’s Recent Price History
- Cryptocurrency Market Caps: An Introduction
7 comments
Wow, this analysis is spot on! Never thought I’d see BTC dip like that after such a rally. Whats the next support level, any guesses?
excellent breakdown, but I’d love to see a bit more on potential external factors. Geopolitics, regulations etc. they all play a part, right?
Solid analysis. Anyone else thinking of shorting BTC if it breaks the support?
Eth and BTC are like rollercoasters, man. One day up, the next down. Guess that’s the game we’re playin.
Can someone pls explain what RSI is? this article assumes we all know it.
Really detailed article, kudos to the author. But why focus only on RSI, why not MACD or other indicators? just curious.
not surprised by the profit taking, happens everytime things look too good. Wonder what next week will bring?