Jamal Al-Farouq Bitcoin has slumped below the $31,000 mark to start this week, likely as traders rush to profit off the recent surge that pushed the cryptocurrency into an overbought condition. As a result, the relative strength index (RSI) reached its highest point since January, which tempted the bears back into the market. Ethereum followed suit, dipping under $1,900.
Bitcoin
As the week commenced, Bitcoin (BTC) experienced a minor downturn, slipping beneath the $31,000 mark on Monday.
BTC/USD plunged to an intraday low of $30,042.38 early in the day, following its peak of over $31,000 on Sunday.
The day’s decrease marks Bitcoin’s third consecutive day of fall and coincides with the RSI venturing into the overbought zone.
Bitcoin chart by TradingView
Over the weekend, the index soared to 72.92, not only coming close to the 73.00 threshold but also achieving its highest value since late January.
This led to a re-emergence of bearish investors, who succeeded in driving the RSI down to its present reading of 68.81.
The next significant support appears to be at 68.00. If this level is breached, there’s a strong possibility that BTC may dip below $30,000.
Ethereum
On the other hand, Ethereum (ETH) struggled to maintain its position above the crucial price threshold of $1,900 during Monday’s session.
After reaching a peak of $1,920.08 on Sunday, ETH/USD tumbled by 2% today, bottoming out at $1,870.30.
However, the cryptocurrency managed a slight rebound and at the time of writing, it is trading at $1,882.04.
Ethereum chart by TradingView
The persistent inability to break through the 61.00 resistance level is a key contributing factor to the current market volatility.
Generally, the momentum in Ethereum has turned bearish following an unsuccessful attempt to surge above a resistance level at $1,930.
Additionally, the RSI has dropped below a support level of 58.00, now sitting at 57.75.
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Do you think Ethereum will finish the month above or below $1,900? Share your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Bitcoin and Ethereum Overbought
What happened to Bitcoin’s price at the start of the week?
Bitcoin’s price fell below $31,000 at the start of the week, following its peak of over $31,000 on Sunday. This drop was likely due to traders deciding to secure their gains after the cryptocurrency entered an overbought state.
How did Ethereum’s price react at the beginning of the week?
Ethereum’s price fell under the $1,900 mark during Monday’s session. This decline came after it hit a high of $1,920.08 on Sunday. By the end of Monday, Ethereum had dipped to $1,870.30 but slightly rebounded to $1,882.04.
What was the condition of the relative strength index (RSI) for both Bitcoin and Ethereum?
For Bitcoin, the RSI reached its highest point since January, hitting a peak of 72.92 over the weekend, and later dropping to 68.81. Meanwhile, Ethereum’s RSI fell below a support level of 58.00, settling at 57.75.
What is the prediction for Bitcoin’s price if the support point of 68.00 is broken?
If the support point of 68.00 is breached, there is a strong possibility that Bitcoin’s price may dip below $30,000.
What is the current sentiment towards Ethereum according to the analysis?
Overall, Ethereum’s momentum has turned bearish after an unsuccessful attempt to surpass a resistance level at $1,930, and its RSI dropping below the support level of 58.00.
More about Bitcoin and Ethereum Overbought
- Bitcoin Price Chart
- Ethereum Price Chart
- Cryptocurrency Market Analysis
- Understanding Overbought and Oversold
- Relative Strength Index (RSI) Explained
