Bitcoin, Ethereum Technical Analysis: BTC, ETH Lower, Ahead of Key Week of US Economic Data
Bitcoin fell below $23,000 on Jan. 31, following a recent move to a five-month high over the weekend. Market volatility has since increased, as traders prepare for a big few days of economic data from the United States. The conference board will release its consumer confidence report later today, with the Federal Reserve holding its policy meeting on Wednesday. Ethereum also moved lower today.
Bitcoin (BTC) retreated from a recent five-month high on Tuesday, with prices falling below the $23,000 mark in today’s session.
BTC/USD fell to a low of $22,657.58 earlier in the day, less than 24 hours after hitting a high at $23,296.53.
The move comes as traders appear to have secured gains from recent surges in price, and ahead of the upcoming Federal Reserve policy decision.
As can be seen from the chart, today’s drop saw BTC move closer to a price floor at $22,500, with the relative strength index (RSI) hitting a floor of its own.
Currently, the index is now tracking at 68.78, which is marginally above its long-term support point at 68.00.
Although a ceiling of 77.00 could be the target for bulls who rejected an earlier breakout, it is likely that prices could consolidate until the dust settles from this week’s fundamentals.
In addition to BTC, ethereum (ETH) was also in the red in today’s session, with prices falling further below $1,600.
Following a high of $1,595.86 to start the week, ETH/USD slipped to an intraday bottom of $1,546.66 on Tuesday.
Since hitting a then four-month high of $1,680 on January 21, the world’s second largest cryptocurrency has mostly consolidated.
Many in the market somewhat saw this coming, due to prices being significantly overbought, with the RSI hovering between 70.00 and 87.00.
Price strength has since weighed heavily, and at the time of writing, the index is currently tracking at 57.02.
ETH has already rebounded from earlier lows, and is currently trading at $1,571.37, with bulls sure to make another run towards the $1,600 zone.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect ethereum to rise back above $1,600 this week? Leave your thoughts in the comments below.