After Friday’s strong gains, bitcoin is consolidating below a critical resistance level for the weekend. As crypto market volatility increased, bulls chose to protect their gains. At the time of writing, they are down by 1%. The session also saw Ethereum slightly lower.
Bitcoin
Bitcoin (BTC), which had experienced strong gains Friday, traded slightly lower Saturday as the price fell below a critical resistance level.
Following yesterday’s high of $24,294.79, which saw prices briefly breakout of the ceiling at $24,200, BTC/USD dropped to a low of $23,481.17 earlier in the day.
This is because traders opted not to try to drive prices up, but to make profits.
As you can see, $24,200 is the resistance. This was also reached by another ceiling, which this time came in the form the 62-mark on the 14 day RSI (relative strengths index).
Recent relative strength rose to the highest level since April 4th, when BTC traded above $43,000. However, current market conditions have caused price momentum to stall.
Prior to today’s price decline, bitcoin bulls were somewhat targeting the $25,000 mark, however in order to reach this, the RSI would need to move beyond 62.
Ethereum
Ethereum (ETH) was also lower in today’s session, as recent bullish sentiment shifted slightly to the bearish side to start the weekend.
The world’s second-largest cryptocurrency was consolidating on Saturday, as prices fell to a low of $1,662.79.
Saturday’s drop comes a day after ETH/USD failed to move beyond its long-term price ceiling of $1,780, which has been held since June 10.
The bears then reacted to the failure and began to press bulls out of their positions.
ETH trades at $1,689.70 as of this writing. The 14-day relative strength indicator is tracking at 64.75 which is slightly below its resistance level of 66.
Should bearish pressure persist in today’s session, the next landing spot for prices could be a floor of $1,620.
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