On Friday, Bitcoin prices fell below the $25,000 mark as markets moved into consolidation following recent gains. Prices dropped by almost $1,700 in the last 24 hours, with the global cryptocurrency market cap down 1.89% as of writing. Ethereum also dropped, after breaking into the $1,700 level on Thursday.
Bitcoin (BTC) fell sharply below a high above $25,000 on Friday, as crypto markets moved into consolidation. BTC/USD dropped to an intraday low of $23,460.76 during today’s session, which comes a day after hitting a high of $25,134.12. The sell-off seems to have occurred as a result of bitcoin bulls being unable to maintain a breakout of a ceiling at $24,200.
Looking at the chart, the 14-day relative strength index (RSI) also moved back below its own resistance level at 65.00. As of writing, price strength is currently at a reading of 61.89, which isn’t too far off from a support of 59.00. BTC has already begun to rebound from its earlier lows, with prices now trading at $23,820.98 at the time of writing.
Ethereum’s (ETH) decline was more on the subtle side, with prices remaining relatively close to the $1,700 mark. Following a high of $1,732.80 on Thursday, ETH/USD is currently trading at $1,636.17 in today’s session. Similar to BTC, ETH fell below a key resistance level of $1,675 on its way to its current price point.
The decline coincided with the RSI failing to break out of a ceiling at 60.00. It is currently tracking at 58.90. A positive, however, is that the 10-day (red) moving average is no longer downward facing, with the potential for a swift upwards cross faintly on the cards. Should this occur, there is a strong possibility that ethereum will not only move back above $1,700, but potentially closer to $1,800.
The recent sell-off in the crypto markets has been attributed to the consolidation of recent gains, as well as to profit taking by traders. The weekend could potentially bring further consolidation, as traders take a break from the markets, and the market looks to find its footing.
It is important to note, however, that this is a highly volatile market, and prices can change rapidly. As such, it is important to exercise caution when trading and to have a plan in place to manage risk.
In addition, it is also important to keep up to date with the latest news and developments in the crypto space. This can help traders to stay informed, and to make more informed trading decisions.
Finally, it is important to remember that crypto is still a relatively new asset class, and is subject to a high degree of risk. It is therefore important to do your own research, and to understand the risks associated with investing in this asset class before making any trades.
Overall, the recent sell-off in the crypto markets is not unexpected, and is likely just a temporary pullback. As the market continues to mature, it is likely that prices will begin to stabilize, and that we will see further gains in the near future.
In the meantime, traders should keep an eye on the markets, and be prepared to take advantage of any opportunities that arise. With the right strategy and risk management in place, traders can still make a profit in this volatile market.
Will we see further consolidation this coming weekend? Leave your thoughts in the comments below.
