Following significant increases on Wednesday, bitcoin and ethereum prices have both consolidated below major resistance levels. BTC maintained a somewhat higher price of $47,300, while ETH traded near $3,400. As of this writing, the global cryptocurrency market cap was down 0.48 percent.
Bitcoin’s price stabilised on Wednesday, following Tuesday’s significant advances, which saw BTC reach multi-month highs.
BTC/USD, on the other hand, plummeted to an intraday low of $46,746.21 on Wednesday, as prices failed to sustain a breakout over the $48,080 barrier.
Today’s decline occurred as prices reached a high of $47,938.21. Bullish momentum, on the other hand, slowed somewhat as bulls likely secured some earlier gains.
The question now is whether these price declines will be sustained, with bears attempting to enter the market in order to initiate a turnaround in price strength.
On the chart, the 14-day RSI has also began to decline, currently tracking at 69, which remains overbought.
If bears attempt to push prices lower, this might be a factor, with the 61 RSI floor a possible target, sending BTC to $44,000.
Despite today’s decline, ethereum remained barely above the $3,400 threshold.
As of the time of writing, ETH/USD was trading 1.70 percent down, having fallen to an intraday low of $3,349.24 from a previous high of $3,466.67.
Wednesday’s price fall comes less than 24 hours after Bitcoin reached a nearly four-month high of $3,483.
According to the chart, one explanation for the decrease is that price strength is significantly overbought.
This comes as the 14-day RSI remains over 70, near its highest level since September of last year.
Bulls most likely saw this as a great opportunity to liquidate their positions, while bears saw it as an ideal opportunity to drive prices lower.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.