Bitcoin and Ethereum Technical Analysis: BTC Consolidates Recent Losses to Start the Weekend
The recent sell-off in the cryptocurrency markets came to a temporary halt as bitcoin (BTC) and ethereum (ETH) marginally stabilized on March 4, 2021. Bitcoin fell to a two-week low on Friday, but the weekend session saw a slight shift in the overall sentiment. Meanwhile, ethereum recovered and moved back into the green territory.
Bitcoin Technical Analysis
Bitcoin consolidated Friday’s losses to start the weekend, as market volatility eased in the weekend session. BTC/USD rose to an intraday high of $22,444.19 today, after hitting yesterday’s low of $22,213.24. This move brings bitcoin back above the long-term support point at $22,300 following Friday’s breakout.
The 14-day relative strength index (RSI) has also appeared to have found a floor, which has helped ease the decline in price strength. At the time of writing, the index is tracking marginally above the support point at 42.00, at 42.89.
However, aspiring bulls have a reason for concern with the imminent downward crossover of the 10-day (red) and 25-day (blue) moving averages. This downward crossover of moving averages could signal future declines in bitcoin’s price.
Ethereum Technical Analysis
ETH/USD settled on Saturday as bearish momentum somewhat wore off. Ethereum hit a high of $1,575.87 in today’s session, less than 24 hours after trading at a low of $1,552.45. As a result of this rebound, the world’s second-largest cryptocurrency rose back above a price floor at $1,560.
However, the 10-day (red) moving average is on the brink of a downward cross with its 25-day (blue) counterpart. This could be temporary, and further movements towards $1,600 could be expected if the price strength moves from the support point of 44.00 towards the resistance level of 48.00.
At the time of writing, the RSI is tracking at 45.21, relatively higher than yesterday’s bottom at 44.51. The bulls have rejected a breakout of the 44.00 floor, but if the price strength moves towards the resistance level at 48.00, there is a strong possibility that ETH will be above $1,600.
Conclusion
The recent sell-off in cryptocurrency markets came to a temporary halt as bitcoin and ethereum marginally stabilized on March 4, 2021. Bitcoin regained lost ground by moving back above its long-term support point of $22,300 after breaking out of Friday’s low. Ethereum also rose back above a price floor of $1,560, thereby resisting the downward trend.
The technical indicators point to a positive outlook for bitcoin and ethereum. The 14-day RSI has found support, and the imminent downward crossover of the 10-day and 25-day moving averages could signal a price decline for bitcoin. Similarly, ethereum’s upward momentum could be slowed down by the downward crossover of its 10-day and 25-day moving averages.
Nonetheless, if the price strength moves from the support points towards the resistance levels, we could see further price gains for both bitcoin and ethereum.
