Bitcoin underwent a retracement from its recent gains on Thursday, as traders struggled to overcome a key resistance level, resulting in heightened market volatility following the release of the U.S. inflation report. Meanwhile, Ethereum experienced a slight decline, slipping below the crucial $1,900 threshold.
During the current session, Bitcoin (BTC) consolidated below the $31,000 level as traders continued to digest the latest inflation report. BTC/USD reached an intraday low of $30,228.84, following its peak at $30,959.97 the previous day. The failure to sustain a breakout above the critical resistance level at $30,800 led to the drop, coinciding with the 14-day relative strength index (RSI) unable to breach its own ceiling at 61.00. Currently, the index hovers at 59.30, with a potential target of 55.00 if the momentum further declines. Traders should monitor the situation closely as Bitcoin might potentially dip below the $30,000 mark.
Ethereum (ETH) also experienced a decline after briefly surpassing $1,900, and a moving average crossover appears imminent. Following Wednesday’s high of $1,901.15, ETH/USD retreated to a session low of $1,864.50. Similar to Bitcoin, this drop occurred as Ethereum slipped below the recent resistance level of $1,890, approaching the floor at $1,850. Notably, the RSI struggled to surpass the ceiling at 53.00 and currently stands at 52.56. Overall momentum leans bearish, with the 10-day moving average expected to intersect the 25-day trend line soon. Traders should be mindful of potential exits around $1,795.
As market conditions evolve, it is crucial for traders and investors to stay informed about Bitcoin and Ethereum’s price movements and monitor key levels to make well-informed decisions.
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