Bitcoin, Ethereum Technical Analysis: BTC Drops Below $31,000, After Becoming Overbought
Bitcoin fell below $31,000 to start the week, as traders seemingly moved to secure gains, as the cryptocurrency became overbought. The relative strength index (RSI) rose to its highest point since January, prompting bears to reenter the market. Ethereum also declined, falling below $1,900.
Bitcoin
Bitcoin (BTC) moved marginally lower to start the week, as price fell below the $31,000 mark on Monday.
BTC/USD dropped to an intraday low of $30,042.38 earlier in the day, which comes after price peaked above $31,000 on Sunday.
Today’s slippage sees bitcoin decline for a third straight day, and comes as the relative strength index (RSI) moved into overbought territory.
Over the weekend, the index hit a peak of 72.92, which was not only near a ceiling of 73.00, but also its highest point since late January.
This reading prompted bears to once again enter the market, pushing the RSI down to a current reading of 68.81.
The next visible floor appears to be at 68.00, and in the event this support point is broken, there is a good chance that BTC slips below $30,000.
Ethereum
Ethereum (ETH), for its part, was unable to remain above a key price level of $1,900 during Monday’s session.
Following a high of $1,920.08 on Sunday, ETH/USD dropped by 2% today, hitting a bottom of $1,870.30 in the process.
The cryptocurrency has since marginally rebounded, and as of writing is trading at $1,882.04.
A key reason for the turbulence remains the fact that price strength has been unable to move past a ceiling at 61.00.
Overall, momentum in ethereum has turned bearish following a failed attempt to move above a ceiling at $1,930.
In addition to this, the RSI fell below a floor at 58.00, with a current reading at 57.75.
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Will ethereum end the month above or below $1,900? Leave your thoughts in the comments below.
