Bitcoin was largely unchanged on Wednesday, as moving averages closed in on a potential upward crossover. The potential for a “death cross” will likely be in the mind of would-be bulls, looking for an opportune time to reenter. Ethereum continues to hover close to a floor of $1,630.
Bitcoin
Bitcoin’s consolidation continued on Wednesday, as bulls remained on the sidelines, despite the prospect of a “death cross.”
The term refers to an entangling between moving averages, in this instance the 10-day (red) and 25-day (blue) trendlines.
Despite the potential for this to occur, BTC/USD bottomed out at $25,628.61, which is marginally lower than Tuesday’s high of $25,858.37.
Looking at the chart, price consolidation comes as the relative strength index (RSI), flatlines close to a support of its own at 35.00.
Bulls have so far rejected a move below this point, however in the event that this occurs, BTC could fall below $25,000.
Longer-term bitcoiners could be hoping for this, as a means of buying at an even lower rate.
Ethereum
Ethereum (ETH) remained close to the $1,630 level during today’s session, despite attempts by bears to force a breakout below $1,600.
ETH/USD has climbed away from an earlier low of $1,610.14 on Wednesday, with price going on to peak at $1,635.29.
Similar to bitcoin, the 10-day (red) and 25-day (blue) moving averages seem set for an imminent upwards cross, however price has yet to react to the prospect.
Ethereum’s price strength now sits at a reading of 36.80, marginally above a floor of 36.00, however a ceiling of 44.00 is likely the real target for traders.
Should a reversal happen in the coming days, a move to this point of resistance will be enough to send ETH past $1,700.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect some bullish momentum later in the week? Leave your thoughts in the comments below.