BTC approaches $24,000 after weekend rally – market updates

Bitcoin began the week trading near a five-month high as prices consolidated weekend gains. Prices rose to nearly $24,000 on Sunday after breaking a key resistance level. Ethereum fell back below $1,600 on Monday after rising to a one-week high during yesterday's session.

Bitcoin

Bitcoin ( Bitcoin ) remained near a five-month high on Monday after a strong rally toward $24,000 over the weekend.

After hitting a high of $23,919.89 on Sunday Bitcoin /USD fell to a low of $23,166.83 earlier in the week.

The increase on Sunday saw Bitcoin Bulls are pushing prices to their strongest point since August 26, however these same traders have already started to pull back.

Looking at the chart, the decline began after a failed breakout above a ceiling at 85.00 on the 14-day Relative Strength Index (RSI).

As of this writing, the index is now at 72.19, with a bottom at 65.00 the only visible target for bears at the moment.

If this zone is hit, this is very likely Bitcoin is trading near a support point at $22,500.

ether

ether ( ETH ) also fell earlier in the week as sentiment changed following a breakout above $1,600

ETH /USD slipped to a low of $1,582.18 earlier in the day as bulls failed to hold Sunday's high of $1,653.73.

Yesterday's peak saw the world's second-largest cryptocurrency rise to its strongest point in a week, but traders used it as an ideal moment to lock in recent gains.

The move caused Ethereum to break marginally above a ceiling of $1,650, however bearish sentiment has prevailed around this level for the past three months.

A break below a 60.00 floor on the RSI also contributed to the decline, with the index now at 58.40.

If today's decline continues in the coming days, this is possible ETH could be headed for a bottom at $1,550.

Register your email address here to receive weekly price analysis updates delivered to your inbox:

Will cryptocurrency sentiment be bullish or bearish this week? Leave your thoughts in the comments below.

Eliman Damell

Eliman brings an eclectic viewpoint to market analysis. He was previously a brokerage director and online trading instructor. He currently serves as a commentator on various asset classes including crypto, stocks and forex, while also being the founder of a startup.

Photo credit: Shutterstock, Pixabay, WikiCommons