Bitcoin, Ethereum Technical Analysis: BTC, ETH Close to 3-Month High to Start the Week
Bitcoin and ETH rallied on Sunday evening, as prices approached their highest level in almost three months. BTC climbed above $47,000, while ETH moved past the $3,300 point to start the week.
Bitcoin started the week in strong fashion, with prices rising past $47,000 for the first time since the beginning of the year.
On Monday, BTC/USD rose to an intraday high of $47,245, as prices rose to their highest point since January 2.
Today’s move took place following the breakout of the $44,950 resistance level during Sunday’s session, with prices now targeting yet another ceiling.
Bitcoin bulls will likely be looking towards the $50,000 mark as their next target, however they must first overcome resistance at $48,200.
However, looking at the chart, the 14-day RSI indicator is now deeply in overbought territory, tracking at nearly 70, which is its most since October.
This will likely be a huge obstacle for bulls to overcome, as price strength appears to have peaked, with bears possibly waiting for the perfect time to enter the market.
ETH has also rallied to multi-month highs on Monday, as the world’s second-largest cryptocurrency extended its recent gains.
Today’s gains saw ETH climb to an intraday high of $3,351.07, which is the most the price has hit since January 16.
Current ETH bulls may however become slightly nervous, as the upcoming ceiling of $3,390 could get in the way of further upwards momentum.
Similar to BTC, the 14-day RSI on ethereum is currently overbought, with it currently tracking at 71, which is the highest point since September.
The upcoming ceiling is likely one of the main hurdles standing in the way of ETH, as it looks to climb back towards the $4,000 level.
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Will we see further gains, despite prices being overbought? Leave your thoughts in the comments below.
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.