Following yesterday’s rally, bullish momentum waned on Wednesday as both Bitcoin and Ethereum consolidated.After rising above $32,000,BTChad a hump-day session and fell slightly inETHagain; ETHonce again dipped below $2,000;
Bitcoin
BTCwas trading on hump day as bullish sentiment faded somewhat following yesterday’s price spike.
Following Tuesday’s rally to a nearly three-week peak of $32,249.86,BTC/USD fell to a bottom of $31,286.15 earlier today.
This drop was due to bitcoin bulls deciding to liquidate their positions, perhaps despite the price’s recent rise above $30,500 resistance.
Usually after such a breakout, especially after several weeks of consolidation, momentum expands, but bulls seem uncertain about further upside hence some are abandoning their positions.
Looking at the chart, this may be due to the 14-day RSI’s eye on a ceiling of 51, the first broken in three months.
However, if relative strength continues to move beyond this area, we are likely to see a surge toward $34,000.
Ethereum
as well as BTC. Ethereum also fell on Wednesday, with prices dropping back below $2,000 and back toward long-term support/resistance levels.
ETH/USD fell to an intraday low of $1,918.96 earlier in the session today, a level that has served as both support and resistance in recent weeks.
With this price drop, the world’s second-largest cryptocurrency is trading roughly 1.59% lower than yesterday’s peak of about $2,016.
After a temporary breakout from the 44.50 ceiling of the Relative Strength Index, many expected prices to continue rising.
However, this momentum weakened for the reasons mentioned above, and some chose to hold onto their earlier gains and wait for future entries.
If this 44.50 level is eventually crossed, we are likely to see a move toward a higher ceiling of 50, which could seeETHtrading near $2150, which would be a good time to take advantage of this opportunity.
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