As traders responded to July’s nonfarm payrolls reports, Bitcoin was consolidating Friday’s gains to begin the weekend.
After the data was released, Bitcoin/USD surged up to an intraday high of $23,422.83 Friday. This sentiment is now somewhat fading, as prices fell to $22,800.36 today.
This is because bitcoin bulls decided to liquidate their positions earlier to make more gains, since prices have been moving closer to an uncertain point.
The chart shows that this is the $23,500 area, where bulls have been able to overcome bears in recent weeks.
Bulls have abandoned their positions to try and avoid this uncertainty. However, it is possible that some bulls will decide to return as the weekend progresses.
BTC trades at $23,173.40 as of this writing. As we get closer to the price ceiling, the likelihood of a breakout will increase.
On Saturday, Ethereum ( Ethereum) was also consolidated by traders as they became nervous about the price movement towards a key resistance level.
Today’s session saw the world’s second-largest cryptocurrency drop to $1,661.86.
As the day went on, ETH/USD gained momentum and is currently trading in the $1,714 area.
The chart shows that yesterday’s decline was caused by ETH approaching $1,780. Price strength encountered resistance as well.
After failing to surpass its ceiling of 65 Friday, the 14-day relative strength indicator (RSI), is now tracking at 62.80.
This was the catalyst to send ETH lower. Should bulls reenter with substantial force, this will be their first obstacle.