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Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Weekend2 min read

Aug 6, 2022 2 min

Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Weekend2 min read

Reading Time: 2 minutes

Bitcoin was consolidating above $23,000 to start the weekend, as traders continue to react to yesterday’s nonfarm payrolls figure. It was confirmed that 528,000 jobs were added to the U.S. economy in July, which helped boost crypto prices. Ethereum consolidated on Saturday, after reentering the $1,700 region yesterday.

Bitcoin

Bitcoin (BTC) was consolidating Friday’s gains to start the weekend, as traders continued to respond to July’s nonfarm payrolls report.

Following the release of the data, BTC/USD surged to an intraday peak of $23,422.83 on Friday. However, this sentiment has somewhat faded, with prices falling to a low of $22,800.36 today.

This move comes as bitcoin bulls opted to secure earlier gains by liquidating their positions, as prices moved closer to a recent point of uncertainty.

Looking at the chart, this area is the $23,500 level, which in recent weeks has been an area where bears typically overpower bulls.

As a result of this, bulls have so far abandoned their positions in hopes of evading this uncertainty, however as the weekend progresses, we may see some decide to return.

As of writing, BTC is trading at $23,173.40, and as we move closer to this price ceiling, the chances of a breakout will also increase.

Ethereum

Ethereum (ETH) also consolidated on Saturday, with traders nervous as prices moved closer to a key resistance level.

The world’s second-largest cryptocurrency moved to a low of $1,661.86 earlier in today’s session.

However, as the day progressed, ETH/USD rallied, and as of writing, is currently trading around the $1,714 region.

As seen on the chart, yesterday’s decline came as ETH neared a ceiling of $1,780, with price strength also encountering a resistance of its own.

The 14-day relative strength index (RSI) is currently tracking at 62.80, after failing to break out of its ceiling of 65 on Friday.

This was one of the catalysts to send ETH lower, and should bulls reenter with significant force, this will be their first obstacle to conquer.

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