Despite trading lower on Monday, bitcoin is up over 10% from the same point last week, with ETH also gaining within that period. In general, crypto markets were weaker to start the new week.
Following some strong rallies over the weekend, BTC/USD gave back some of these gains on Monday, falling to an intraday low of $36,733.57.
This comes after the world’s largest cryptocurrency edged closer to the $40,000 level, by hitting $38,168.01 during Sunday’s session.
The move saw its 14-day RSI climb to 38, however as on January 18th, price action was simply not strong enough to move past that point.
As of now, bitcoin is tracking at 34 on this indicator, and has extended the consolidation between support of $35,470, and resistance of $39,010.
Looking at the chart, you can see that the 10-day(red) moving average has begun to slow its downward trajectory, giving way for the potential upside swing.
BTC/USD is currently down 2%, trading at $37,259.85, however prospects for a bullish breakout remain, whilst we continue to consolidate at current levels.
Some expect that bull run to come this week.
On Monday, ETH is up over 17% higher from its price at the same point last week, despite trading in the red to begin the day.
ETH/USD fell to an intraday low of $2,489.07 during the session, despite hitting a 5-day high of $2,622.5 late on Sunday.
The short-term resistance of $2,600 which has been in place since January 22nd, continues to be a hurdle to further upside swings.
In addition to this, the RSI has not moved beyond 36 during that same period, and although prices are oversold, the lack in price strength has deterred bulls from taking longer-term positions.
Could that change this week, with more bulls re-entering? Leave your thoughts in the comments below.