Bitcoin started the week trading below $30,000, as the U.S. dollar strengthened during Monday’s session. USD/JPY rose to a one-month high, with the greenback also gaining against the euro and British pound. Ethereum was also lower, falling below $2,100.
Bitcoin (BTC) dropped below the $30,000 mark on Monday, as a strong U.S. dollar weakened cryptocurrency markets.
BTC/USD fell to an intraday low of $29,816.72, which comes less than 24 hours after trading at a high of $30,555.54.
Monday’s price slippage comes two days after bitcoin rose above $31,000 for the first time since June 7.
Ultimately, this recent bull run pushed BTC into overbought territory, with the relative strength index (RSI) hitting a ceiling of 71.00.
At the time of writing, the index is tracking at 63.45, with a floor at the 59.00 mark potentially approaching.
Should price strength continue to move towards this level, there is a good chance that BTC will move below a floor at $29,600.
Ethereum (ETH) mostly consolidated to start the week, as price moved below the $2,100 mark on Monday.
Following a high of $2,137.45 on Sunday, ETH/USD dropped to a bottom of $2,076.18 earlier in today’s session.
Monday’s decline sees the world’s second largest cryptocurrency drop from a recent 11-month high.
Similar to bitcoin, this decline coincided with the 14-day RSI failing to break out of a ceiling, and in this instance it was at the 75.00 mark.
Despite this, ETH remains close to the $2,100 mark, helped by the fact the index is still above its floor at 69.00
If this point of support were to break, then bears would likely reenter the market.
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Could ethereum fall below $2,000 this week? Leave your thoughts in the comments below.