On Tuesday, as cryptocurrencies hit overbought areas, Bitcoin declined from a multi-week high. In front of important data points later this week, traders appear to have chosen to take advantage of recent gains. The price of Ethereum fell below $1,700.
Bitcoin
During today's session, Bitcoin (BTC) dipped below the $28,000 mark as traders tried to hold onto Monday's gains.
BTC/USD fell to a low of $27,374 earlier in the day after soaring to a peak of $28,494 to begin the month of October.
The Bitcoin fell after reaching its highest point since August 17 yet this upward momentum also proved to be its demise.
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| BTC/USD--Daily Chart |
The advance on Monday caused the 14-day relative strength index (RSI) to rise above 70.00 and enter overbought territory, which is why this occurred.
Price strength is currently tracking at 59.93, just above a support level of 57.00, as of this writing.
There is a strong probability that BTC could fall below $27,000 in the next days if the aforementioned floor is broken.
Ethereum
Ethereum (ETH)'s price once again dropped under the $1,700 threshold as a result of today's profit-taking.
Tuesday, less than 24 hours after reaching a seven-week high of $1,733.51, ETH/USD fell to a low of $1,646.08.
The downturn seems to have started after ethereum bulls failed to push a breakout above a $1,730 ceiling.
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| ETH/USD--Daily Chart |
As seen on the chart, the sell-off coincided with the RSI dropping below a floor at 60.00 and devoured gains from the previous three days.
The second-largest cryptocurrency in the world is currently trading at $1,656.73 and seems to be going for a floor at $1,620.
Will ethereum hit this ground in the near future? Post your opinions in the section below.