Bitcoin, Ethereum Technical Analysis: Bitcoin Consolidates Below $31,000, as Traders Digest Recent Economic Data
Bitcoin retreated from recent gains on Thursday, as traders were unable to sustain a breakout of a key resistance level. Market volatility has risen following yesterday’s U.S. inflation report, which dropped to a two-year low. Ethereum was marginally lower, slipping below $1,900.
Bitcoin
Bitcoin (BTC) consolidated below the $31,000 level in today’s session, as traders continued to digest the latest inflation report.
BTC/USD dropped to an intraday low of $30,228.84 earlier in today’s session, a day after peaking at $30,959.97.
The drop came as bulls were unable to sustain a breakout above a key resistance level at the $30,800 zone.
From the chart, this coincided with the 14-day relative strength index (RSI) failing to break out of its own ceiling at 61.00.
At the time of writing, the index is tracking at 59.30, with a floor of 55.00 a possible target should momentum continue to slip.
Should this occur, there is a good chance that bitcoin will move below $30,000.
Ethereum
After a brief stint above $1,900, ethereum (ETH) also moved lower on Thursday, with a moving average crossover close to occurring.
Following a high of $1,901.15 on Wednesday, ETH/USD fell to a bottom at $1,864.50 earlier in today’s session.
Similar to BTC, this drop came as ethereum fell below a recent resistance level of $1,890, and towards a floor at $1,850.
One of the reasons for this was due to the RSI failing to move past a ceiling at 53.00. It is currently hovering at 52.56.
Overall, momentum seems to be bearish, with the 10-day (red) moving average likely to race past the 25-day (blue) trend line momentarily.
In the event this takes place, bears could target exits at $1,795.
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Will ethereum end the week above $1,800? Leave your thoughts in the comments below.
