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Bitcoin, Ethereum Technical Analysis: BTC and ETH Consolidate Below Key Resistance levels

After Wednesday's strong gains, bitcoin and Ethereum both saw their prices consolidate below key resistance levels. BTC traded at $3,400 while ETH traded close to $47,300. As of writing, the global crypto market cap was 0.4% lower.

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Bitcoin, Ethereum Technical Analysis: BTC and ETH Consolidate Below Key Resistance levels

Bitcoin

After Tuesday's strong gains, Bitcoin saw its price stabilize during Wednesday's session. This was in addition to the BTC surge to multi-month highs.

On Wednesday, however, Bitcoin/USD dropped to $46,746.21 an intraday low. This was because prices failed to break the $48,080 ceiling.

Today's decline was caused by prices rising to $47,938.21. Bullish momentum did not seem to be as strong, though bulls may have made some gains in the past.

The question now is whether these price drops will continue, with bears looking for entry to the market to cause a reversal of price strength.

The chart shows that the 14-day RSI is now tracking at 69. This is still too high.

Bears could look to lower prices, which could be a factor. The 61 RSI floor could be a target, pushing Bitcoin towards $44,000.

Ethereum

Even though ethereum fell in today's session it remained marginally above $3,400.

As of writing ETH/USD was trading at 1.70% less, after prices reached an intraday low price of $3349.24. This follows an earlier high of $3466.67.

The price drop Wednesday comes just 24 hours after the second-largest cryptocurrency in the world, Bitcoin, reached a peak of nearly $4,483 for almost four months.

The chart shows that one of the main reasons for the decline can be seen in the fact the price strength is extremely overbought.

This is because the 14-day RSI remains above 70, close to its highest point since September 2013.

This was likely a time for bulls to sell their positions and a perfect moment for bears to push prices lower.


 

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