Following yesterday’s rally in crypto, prices consolidated on Wednesday, as markets were once again fearful of escalating tensions between Russia and Ukraine. The uncertainty came as NATO reported that Russia was increasing troops on the border, as opposed to sending some home.
BTC, which looked set for a breakout of the $45,000 level yesterday, fell on hump-day, sending the global crypto market cap 1.40% lower in the process.
The price of bitcoin hit a high of $44,667.22 on Tuesday, however today dropped to an intraday low of $43,622.02, as markets look set for consolidation.
Markets have been fixated with $46,000 as the long-term resistance, however a shorter-term ceiling at $44,800 seems to be the main obstacle to overcome.
This drop in price has led to the Relative Strength Index (RSI) of 14-days falling to 56, a level which seems to be a support point.
Although price strength has yet to fall below this level, if it does, markets will likely see an influx of bears pushing BTC/USD to the floor.
This floor is located around the $41,800 region, and we could see this tested if current price momentum persists.
Ethereum was also lower on Wednesday, however marginally managed to remain above its key level of $3,000.
Yesterday, ETH/USD broke past its recent resistance level of $3,022 and looked set for a run towards its higher ceiling of $3,290.
However, that move was cut short, and a reversal in momentum sent ETH to an intraday low of $3,072.03 instead.
Despite this decline in price, the 14-day RSI has still yet to hit its long-term floor at 51, and is currently tracking at 53.
This could either be positive for bulls hoping for a reversal, or bears waiting for further downward pressure.
Is this a perfect time to buy the dip? Leave your thoughts in the comments below.