Despite Elon Musk’s bullish remarks, Bitcoin and ETH continued to consolidate in the first week of this week. In a tweet earlier today, Musk said: “I still own & won’t sell my Bitcoin, Ethereum or Doge.” Although prices marginally rose, they remain close to recent support levels.
Bitcoin
The world’s largest cryptocurrency rebounded from its support level to start the week, however it still remained below $40,000.
After a Sunday low of $37680.73, BTC/USD rose to an intraday peak of $39234.62 Monday.
Today’s high comes as markets failed to break out of the floor of $37,600, which was held, as price strength also found a floor.
After a failure to break the 43.61 support, the 14-day RSI has now reached its resistance point at 47.
This is the lowest RSI level since March 8. It has been a historical point at which bears are under pressure.
BTC will continue to consolidate between $39,500 and $37,600 until there is a real breakout from the 47-year old ceiling.
Ethereum
As prices fell marginally below the support level, the consolidation of ETH was evident at start to week.
ETH/USD hit an intraday low of $2,503.89 during today’s session, as bears momentarily broke past the $2,550 support level.
Although the price of ETH has risen to a $2,604.03 high today, the market pressure that has been building recently saw ETH stabilize at lower levels.
A slight downtrend could signal a possible bear trap in which prices indicate that the market is about to fall before a rebound.
This uncertainty will continue until there is a major shift in the market sentiment.
Do you think this consolidation will continue for a long time? Comment below to share your views.
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