Crypto markets stalled on January 16 when US markets were closed to observe Martin Luther King Jr. Day. Investors may have taken the opportunity to lock in profits after the currency climbed to its highest ever value and surpassed $21,000 for the first time since November. Ethereum also saw a slight rebound from today’s highs.
Bitcoin
Bitcoin (BTC) saw a period of consolidation at the start of the week after prices failed to break through a key resistance level.
The price of BTC/USD dropped to an intraday low of $20,681.98 after it registered a maximum of $21,345.25 on Sunday.
This decline came as the most valuable cryptocurrency in the world could not break past its $21,400 barrier.
The chart shows that this was expected, given that the 14-day RSI was floating in the overbought zone.
At the moment of writing, the price strength index is at 86.65. It has not exceeded the 90.00 mark since its inception.
This week may likely see further dips, with a floor of $20,000 being a potential target for buyers.
Ethereum
Unlike Bitcoin, Ethereum (ETH) followed a failed breakout.
ETH/USD recorded an intraday low of $1,529.79, after trading as high as $1,579.48 on Sunday.
The currency’s inability to stay above $1580 led to a resurgence of bearish sentiment.
