- Technical Analysis of Bitcoin and Ethereum: BTC Begins the Week Over $28,000 as the World Financial Crisis Worsens
On Monday, Bitcoin was trading above $28,000 as the week’s Bull Run in cryptocurrencies continued. This positive outlook comes from the respective coordinated actions held by the Federal Reserve and other significant central banks to increase market liquidity. Ethereum is still trading at about $1,800.
Bitcoin
As markets reacted to the worsening global banking crisis, Bitcoin (BTC) opened the week trading above $28,000.
Several major G7 central banks are acting in concert at the same time that Credit Suisse was acquired by rival UBS in a deal arranged by Swiss authorities.
A day after trading at a low of $27,196.76, BTC/USD surged to an intraday peak of $28,527.72 earlier today.
The rise caused bitcoin to reach its highest level since last June, and many people are now expecting a move above $30,000.
The 14-day relative strength index (RSI), currently tracking at 72.73, indicates that this increase has generally pushed prices into overbought territory.
There is a good likelihood that Bitcoin will reach $30,000 if the next obvious point of resistance at $75.00 is reached.
Ethereum
On the other hand, when prices dropped below $1,800 on Monday, Ethereum (ETH) maintained recent gains.
ETH/USD hit a high of $1,843.84 on Sunday before falling to a low of $1,744.86 to begin the week.
This drop occurred just days after ETH reached its highest level since late August when Ethereum bulls appeared to be clinging to recent gains.
Some are blaming the RSI, which dropped below a long-term ceiling at the 66.00 level, for the overall collapse.
The index is currently tracking at 63.74, with a floor of 62.00, posing a potential objective for bears.
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