by Eliman Dambell
Following strong gains to start the week, BTC once again fell under $30,000, as crypto prices moved lower on Tuesday. The downturn follows up from yesterday’s rally, which came as Balenciaga announced it would be accepting crypto payments. ETH also dropped, falling under $2,000 today.
Bitcoin fell under $30,000 on Tuesday, as bears returned to action following a green start to the week.
Following a high of $30,547.50 during Monday’s session, BTC/USD fell to an intraday low of $28,975.56 earlier today.
Today’s drop saw BTC fall by over 5% in the day, as bullish sentiment following the Balenciaga crypto announcement faded.
Since then, bears have now pushed prices closer to support at $28,800, which is an area where BTC has resided over the past few weeks.
Looking at the chart, the 14-day Relative Strength Index is also under resistance at 38, which seems to be another contributing factor to today’s decline.
Like we have discussed in recent days, unless there are significant increases or decreases in relative strength, then markets will likely continue to consolidate.
Yesterday’s bullish sentiment also wore off for ETH, which once again fell below the $2,000 level following promising gains.
The world’s second-largest cryptocurrency dropped to an intraday low of $1,964.39 on Tuesday, which is just over 4% lower than yesterday’s top.
ETH/USD is now just over $10 away from support of $1,950, following today’s sell-off, which pushes prices back toward the long-term floor.
A promising sign for ETH is that the 10-day moving average is heading sideways, which normally is a signal of future upwards crosses.
So although we are currently consolidating, bulls will likely be preparing for a breakout, as soon as upward momentum picks up.
Could we see a breakout before the end of this month? Leave your thoughts in the comments below.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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