After strong gains on Friday, bitcoin consolidated below a key resistance level early in the weekend. The bulls opted to lock in gains as price uncertainty mounted in the crypto markets, which are down 1% on the day at the time of writing. Ethereum was also marginally lower on the session.
Bitcoin
After strong gains on Friday, bitcoin (BTC) traded marginally lower on Saturday as prices slipped below a key resistance point.
After yesterday’s high of $24,294.79, which saw prices briefly breach the $24,200 ceiling, BTC/USD fell to lows of $23,481.17 earlier in the day.
This low comes as traders appear to have decided to take profits at this point of uncertainty rather than attempt to push prices even higher.
BTC/USD daily chart
Looking at the chart, the $24,200 resistance level came as another ceiling was hit, this time in the form of the 62 level of the 14-day RSI (Relative Strength Index).
Relative strength recently surged to its highest level since April 4, when BTC traded above $43,000, but price momentum in this case has stalled due to current market conditions.
Before today’s decline, bitcoin bulls were somewhat targeting $25,000, but to reach there, the RSI would need to scale above 62.
ether
Ethereum (ETH) was also lower in today’s session as recent bullish sentiment shifted slightly to the bearish side earlier in the weekend.
The world’s second largest cryptocurrency consolidated on Saturday as prices fell to a low of $1,662.79.
Saturday’s drop comes a day after ETH/USD failed to breach its long-term price cap of $1,780 held since June 10.
ETH/USD daily chart
This failure then led to a re-entry of bears smelling blood and proceeding to displace previous bulls from their positions.
As of this writing, ETH is trading at $1,689.70 with the 14-day relative strength index at 64.75, which is slightly below its own resistance level of 66.
If the downward pressure continues in today’s session, the next landing spot for prices could be a floor of $1,620.
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Will Ethereum Drop Below $1,600 This Weekend? Leave your thoughts in the comments below.
Elijah Dambell
Eliman brings an eclectic perspective to market analysis, having worked as a broker director, retail educator, and market commentator for crypto, stocks, and forex.
Photo credits: Shutterstock, Pixabay, Wiki Commons
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