Bitcoin, Ethereum Technical Analysis: BTC Hits 1-Week Low, Bullish Sentiment Fades on Monday

Bitcoin, Ethereum Technical Analysis: BTC Hits 1-Week Low, Bullish Sentiment Fades on Monday

Bitcoin fell to a seven-day low to start the week, as recent bullish momentum began to wear off in cryptocurrency markets. Friday’s stronger than expected U.S. non-farm payrolls report has made some question the Federal Reserve’s view that inflation has peaked. Ethereum also declined on Monday, however, it remained above $1,600. Bitcoin

Bitcoin (BTC) started the week falling to a seven-day low, as market sentiment began to shift downwards.

BTC/USD has now fallen lower for five straight sessions, with today’s decline taking prices to a bottom of $22,734.48.

This drop sees bitcoin hit its weakest point since January 30, when prices were trading at a floor of $22,500. BTC/USD – Daily Chart

Looking at the chart, the world’s largest cryptocurrency appears to be heading towards this point of support once again.

Recent declines in BTC have come as the 14-day relative strength index (RSI) broke out of a floor at 68.00. It is now tracking at 61.15.

This is the lowest reading for the index in nearly a month, and comes following an extended streak in overbought territory. Ethereum

Ethereum (ETH) also moved lower on Monday, however prices were able to remain above the $1,600 level despite the decline.

Following a high of $1,665.26 on Sunday, ETH/USD dropped by as much as 2% in today’s session, hitting a low of $1,616.30 in the process.

As a result of this sell-off, ethereum moved closer to its recent support level at $1,600. However, bulls have so far rejected a collision. ETH/USD – Daily Chart

This has been helped by the RSI, which has found its own floor at 58.00, providing a soft landing for previous bulls.

ETH has since rebounded from earlier losses, and at the time of writing, is trading at $1,630.55.

Should this RSI floor of 68.00 hold, ethereum bulls may attempt to make another move towards $1,700 as the week progresses.

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What is behind today’s reversal in cryptocurrency prices? Leave your thoughts in the comments below. Eliman Dambell

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. Biggest Movers: SHIB Remains Near Recent Highs as Crypto Markets Fall on Monday MARKET UPDATES | 7 hours ago Biggest Movers: SHIB Jumps 13% on Saturday, Hitting a 4-Month High MARKET UPDATES | 2 days ago

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