On Monday volatility in cryptocurrency markets was high as bitcoin started the week mostly in red. Prices appear to have stabilized and the token moved back below $20,000 once again. Ethereum also traded sideways with prices dropping marginally lower than a critical support level earlier in day.
Bitcoin
Bitcoin (BTC), which began this week as it finished the previous, traded not just in the red but below $20,000.
The world’s largest cryptocurrency fell to an intraday low of $19,673.05 on Monday, as the post-nonfarm-payrolls-report bearish sentiment continued.
Today’s low saw BTC/USD briefly move close to its support point of $19,600, however bulls have so far resisted a move below this point.
The chart shows that the relative strength index (RSI), which measures 24-days of relative strength, fell short of its ceiling.
The RSI currently tracks at 35.84 as of this writing. This is lower than the resistance level of 37.90.
Bitcoin must clear this hurdle before it can climb above $20,000
Ethereum
Although ethereum (ETH) was once again trading below $1,600, prices were mostly higher than Sunday’s low.
ETH/USD hit a low of $1,540 during yesterday’s session, however it has rallied to a peak of $1,584.26 so far today.
Ethereum moves closer to $1,615, its current resistance level. This seems like an area of significant uncertainty.
This volatility is exacerbated by the fact the RSI has also been close to a point of resistance as it currently tracks at 48.00.
The chart shows that bears often reenter here to take advantage of bulls looking for a breakout.
As in bitcoin, ETH bulls who want to see prices surge will have to first move beyond these points of contention.
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