As crypto markets continue to struggle with bearish pressures, Bitcoin and Ethereum were trading lower on the weekend. The current uncertainty surrounding next week’s Federal Reserve meeting has seen prices consolidate for most of the week, with Saturday being no different.
Bitcoin
Bitcoin (BTC) was once again in the red during today’s session, as prices continued to trade below the key $40,000 level.
The world’s largest cryptocurrency dropped to a low of $38,235.54 to start the weekend, following a peak of $39,263.60 on Friday.
Saturday’s fall has seen the price continue to slowly approach the long-term support level of $37,570, which is a point that hasn’t been reached since March 13.
One reason why BTC bears haven’t yet captured this floor is due to the fact that the 14-day RSI continues to sit above its own support.
At the time of writing, relative strength was at 40.50. This is slightly higher than the maximum of 40. Bears are unlikely to have entered in large numbers as they anticipate a rebound.
Recent history has shown that bulls typically push prices higher at this level, which could be a reason for the tentative start to today’s session.
Ethereum
Ethereum (ETH) on the other hand saw its long-term support level briefly hit during today’s session, as traders prepared to leave April behind.
April is the worst month of ETH trading since December. Prices ranged from $3,580 at their peak to $2,770 at their lowest.
Saturday’s bottom saw ETH/USD drop to an intraday low of $2,782.44, which is marginally above support at $2,780.
The price has risen since the low as historical evidence suggests. Bulls are often seen re-entering markets at this stage.
As of writing, ETH is trading at $2,832.82, which is 0.43% lower than Friday’s high, and comes as many hope for pending reversals.
In order to rally more bulls together, the 42-level ceiling of the RSI indicator must be removed.
Is price consolidation in crypto going to an end with May? Comment below to share your views.
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