Volatility in the crypto markets remained high on Monday, as bitcoin was mostly in the red to start the week. The token once again fell below $20,000, as prices appear to be consolidating. Ethereum also traded sideways, with prices falling marginally below a key support level earlier in the day.
Bitcoin started this week as it ended the last, trading not only in the red, but also below $20,000. The largest crypto-currency fell to an intraday low of $19,673.05 on Monday as bearish sentiment continues.
Today’s low saw BTC briefly approach its $19,600 support point, but bulls have so far resisted a move below that point.
Looking at the chart, it appears that the decline is due to the 24-day relative strength index (RSI) failing to break through its own ceiling. At the time of this writing, the RSI is at 35.84, which is below the aforementioned resistance point of 37.90.
For bitcoin to climb back above $20,000, this is likely a hurdle it must first overcome.
Although ethereum was once again trading below $1,600, prices were generally higher than Sunday’s low. ETH hit a low of $1,540 during yesterday’s session, but recovered to a high of $1,584.26 through today.
This move brings ethereum closer to its recent resistance level of $1,615, which appears to be an area of significant uncertainty.
This level of volatility has been reinforced by the fact that the RSI is also near a similar point of resistance, with the index currently at 48.00. As can be seen on the chart, bears typically choose to re-enter at this point, hoping to take advantage of the bulls hoping for a breakout.
As with bitcoin, if ETH bulls intend to push prices higher, they will first have to break through these current points of contention.