Bitcoin consolidated on Jan. 16, as U.S. markets closed in celebration of the Martin Luther King Jr. Day holiday celebration. Traders have seemingly moved to secure recent gains, after the world’s largest cryptocurrency rose above $21,000 for the first time since November. Ethereum also retreated from recent highs in today’s session.
Bitcoin (BTC) consolidated to start the week, as prices failed to break out of a key resistance level.
Following a high of $21,345.25 on Sunday, BTC/USD fell to an intraday low of $20,681.98 earlier in today’s session.
This drop comes as the world’s largest cryptocurrency was unable to move beyond its long-term ceiling at $21,400.
Looking at the chart, this was somewhat expected, due to the 14-day relative strength index (RSI) hovering in overbought territory.
As of writing, price strength is currently tracking at 86.65, after failing to move north of the 90.00 mark.
It is likely that further declines could be on the cards this week, with a floor of $20,000 a potential target for sellers.
In addition to BTC, ethereum (ETH) also retreated from recent highs, which comes after a failed breakout of its own.
ETH/USD dropped to a bottom of $1,529.79 earlier today, which comes after trading at a high of $1,579.48 on Sunday.
Ethereum failed to sustain a move above a ceiling at $1,580, giving way to a resurgence of some bearish sentiment.
Like with bitcoin, ethereum prices were significantly overbought, with the index at its highest point since January 2021.
Now tracking at 83.46, the next visible floor seems to be at the 70.00 mark, which if hit, could see ETH trading near $1,475.
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Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
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