After a recent slip, bitcoin moved back above $30,000 on Monday, ahead of a key week of U.S. economic data, with the headline being the inflation report. Inflation is expected to drop to 3.1% in June, which would be a nearly two-year low. Ethereum also slipped on Monday, remaining below $1,900.
Bitcoin (BTC) started the week trading near the $30,000 level, after the price dropped below this point over the weekend.
Following a low of $29,985.39 on Sunday, BTC/USD jumped to an intraday high of $30,427.59 in today’s session.
The rebound comes as bears rejected a breakout below a recent support point at the $29,900 level.
BTC has mostly been consolidating for the past four days, which has led to the 10-day (red) moving average shifting direction.
After trending upwards in recent weeks, the moving average now looks as though it has flatlined, giving way to a potential downturn in the coming days.
In addition to this, the relative strength index (RSI) is now tracking at 57.75, marginally below a ceiling at 58.00.
Should it fail to break out, there is a good chance that BTC could decline further in the coming days.
Ethereum (ETH) continued to trade below $1,900 on Monday, as price is nearly 5% lower than at the same point last week.
ETH/USD slid to an intraday bottom at $1,848.78 to start the week, a day after trading nearly $30.00 higher.
Overall, this has resulted in ethereum’s 10-day (red) moving average closing in on a downward cross with its 25-day (blue) counterpart.
Should this occur, the first possible target will be a price floor at $1,815, which was last hit on June 30.
Price strength is currently at a reading of 50.35, however should it move under an upcoming floor at 48.00, a sell-off will likely occur.
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Is this recent downturn a result of profit taking? Leave your thoughts in the comments below.