Bitcoin began the week trading near a five-month high as prices consolidated weekend gains. Prices reached nearly $24,000 on Sunday, after breaking through a key resistance level. Ethereum fell back below $1,600 on Monday, after hitting a one-week high during yesterday’s session.
Bitcoin remained near a five-month high on Monday, after a strong rally toward $24,000 over the weekend. After a high of $23,919.89 on Sunday, BTC fell to a low of $23,166.83 to start the week.
Sunday’s rally saw bulls push prices to their strongest point since August 26, however these same traders have already begun to pull back.
The decline began after the failure to break through a ceiling at 85.00 on the 14-day relative strength index (RSI). Today, the index is now at 72.19, with a floor at 65.00 as the only visible target for bears.
If this area is hit, it is highly likely that the declines in the index will continue. Bitcoin will trade near a support point at $22,500.
Ethereum also fell earlier in the week, due to a change in sentiment after the $1,600 level was breached. Ethereum slid to a low of $1,582.18 earlier in the day, as bulls were unable to support Sunday’s high at $1,653.73.
Yesterday’s high saw the world’s second-largest crypto-currency climb to its strongest point in a week, however, traders used this as an ideal time to secure recent gains.
The move saw ethereum marginally break above a ceiling at $1,650, but bearish sentiment around that mark has reigned supreme over the past three months.
A break below the 60.00 low on the RSI also contributed to the decline, with the index now sitting at 58.40.
In the event that today’s decline continues over the next few days, it is possible that ETH could head for a floor at $1,550.