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, Ethereum Technical Analysis: BTC Drops Below $31,000, After Becoming Overbought
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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.
