Bitcoin Retreats from Multi-Week High
Bitcoin has pulled back from a multi-week high as cryptocurrencies enter overbought territories, causing traders to secure recent profits. The price of Bitcoin slipped below the $28,000 level, dropping to a low of $27,374. This decline comes after Bitcoin reached its highest level since August 17. However, this momentum led to the 14-day relative strength index (RSI) rising above 70.00 into overbought positions.
Currently, the price strength is tracking at 59.93, just above the support point of 57.00. If this support level is broken, there is a possibility that Bitcoin could fall below $27,000 in the coming days.
Ethereum Faces Profit Taking
Ethereum has also experienced profit taking, with its price falling below the $1,700 mark. Ethereum dropped to a bottom of $1,646.08 after peaking at a seven-week high of $1,733.51. The decline occurred as Ethereum bulls failed to break above the ceiling at $1,730.
The sell-off erased gains from the past three days and coincided with the RSI falling below the floor at 60.00. Currently trading at $1,656.73, Ethereum seems to be heading towards a floor at $1,620.
Hot Take: Crypto Market Corrects After Overbought Conditions
The recent retreat in Bitcoin and Ethereum prices indicates a correction in the crypto market after entering overbought territories. Traders have chosen to secure profits following the strong momentum that pushed both cryptocurrencies to multi-week highs. With Bitcoin slipping below $28,000 and Ethereum falling below $1,700, it remains to be seen whether these price levels will hold as support or if further downward movement is likely. Traders should closely monitor key data points and the RSI for signs of market sentiment and potential future trends.
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