After briefly rising above $31,000, bitcoin consolidated on Wednesday, as bulls moved to secure recent gains. The uncertainty came as crypto custodian Prime Trust entered receivership, after being found to be illiquid by authorities. Ethereum also declined, once again falling below $1,900.
Bitcoin
Bitcoin (BTC) consolidated on Wednesday, as traders opted to secure profits following a recent bull run.
BTC/USD broke out of a key resistance level at $30,800 on Tuesday, on its way to a peak at $31,006.79 late in yesterday’s session.
However, take profit orders seemed to have been triggered, with bitcoin dropping to an intraday low of $30,169.78 today.
As mentioned yesterday, the relative strength index (RSI) was approaching a ceiling at 73.00, and it appears that bulls were unable to move beyond this point.
The index is now tracking at the 66.45 mark, which comes after price strength was unable to stop at a support level at 68.00.
Should this downward momentum continue, it is likely that BTC will fall below $30,000 in the coming days.
Ethereum
Additionally, ethereum (ETH) also edged lower on Wednesday, with price once again falling under the $1,900 mark.
After Tuesday’s peak at the $1,911.31 mark, ETH/USD slipped to a bottom at $1,850.87 earlier in today’s session.
This low has acted as an interim point of support for previous bulls, who typically go on to push prices higher from this level.
So far, that has been the case, with the world’s second largest cryptocurrency now tracking at $1,862.93.
Ethereum’s price strength is currently hovering slightly below a floor at 55.00, and should it once again move above this zone, bullish optimism could rise.
If so, the next target will likely be a breakout of the $1,930 resistance level.
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