Despite prices rallying in today’s session, bitcoin continued to trade below $20,000 on Wednesday following recent declines. Although ETH was also marginally higher, its price was once again trading under $1,100. Overall, crypto markets were nearly 1% higher as of writing.
Bitcoin was trading slightly higher on Wednesday, however prices of the token are still under $20,000 following a recent sell-off.
The world’s largest cryptocurrency rose to an intraday high of $19,973.58 in today’s session, as bulls attempted to reenter the $20,000 region.
However, following a four-day losing streak, sentiment remains bearish, with bulls somewhat tentative about taking long positions.
Today’s bounce came as the 14-day RSI also rose, briefly breaking out of its previous support, which is now acting as a new resistance level at 37.40.
Looking at the chart, bulls have historically bought dips around this point, and should the 10-day moving average continue to climb, we could see momentum continue to move upward.
As of writing, the Relative Strength Index is tracking at 38.63, with an upcoming ceiling at the 41.60 mark.
Like bitcoin, ETH also rebounded in today’s session, as it too snapped a four-day losing streak on hump day.
As of writing, ETH/USD moved to a high of $1,086.58 on Wednesday, less than a day after trading at a low of $1,037.56.
Following yesterday’s low, which saw prices fall below support at $1,050, bulls opted to push the token higher, by buying the dip.
As seen on the chart, the choice to buy came as price strength failed to break out of its own floor at 35.50, which likely was a key signal for traders.
Overall, the token is down nearly 6% from the same point last week, however prices have mostly been stable since falling below $900 almost a month ago.
With the current floor holding firm, bulls will likely be optimistic of a potential rally in price, however we will likely see further consolidation until that point.
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Do you expect ETH to fall below its $1,050 floor in July? 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.
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