Bitcoin, Ethereum Technical Analysis: BTC Continues to Consolidate, Despite Encouraging Comments From Elon Musk

Bitcoin

The world’s largest cryptocurrency rebounded from its support level to start the week, however it still remained below $40,000.

Following a low of $37,680.73 on Sunday, BTC/USD has so far risen to an intraday high of $39,234.62 on Monday.

Today’s high comes as markets failed to break out of the floor of $37,600, which was held, as price strength also found a floor.

As of writing, the 14-day RSI is under its own resistance point of 47, following a failed break of the 43.61 support.

This level was the lowest the RSI has tracked since March 8, and has historically been a point at which bulls begin to pressure bears.

However, until we see a true breakout of the current ceiling of 47, BTC will likely continue to consolidate between $37,600 and $39,500.

Ethereum

The consolidation of ETH was even more evident to start the week, as prices marginally slipped below recent support.

ETH/USD hit an intraday low of $2,503.89 during today’s session, as bears momentarily broke past the $2,550 support level.

Although prices have since risen to a high of $2,604.03 today, the recent market pressure has seen ETH consolidate in the form of lower lows.

This slight descending trend could be a sign of either a bear trap, where prices give the sentiment of a falling market prior to a significant rebound, or the beginning of further drops in price.

We will likely continue to see this uncertainty extend, up until a huge shift in market sentiment finally arises.

How long do you expect this consolidation to continue? Leave your thoughts in the comments below.