• Bitcoin (BTC) retreated from a recent five-month high on Tuesday, with prices falling below the $23,000 mark in today’s session.
• Ethereum (ETH) was also in the red in today’s session, with prices falling further below $1,600.
• Traders are preparing for a big few days of economic data from the United States and Federal Reserve policy meeting on Wednesday.
Bitcoin Price Retreats Below $23k
Bitcoin (BTC) fell below the critical $23,000 mark on Jan. 31 following a recent move to a five-month high over the weekend. Market volatility has since increased as traders prepare for an important week of US economic data.
Ethereum Price Also Lower
In addition to BTC, ethereum (ETH) was also in the red on Tuesday, with prices dropping further below $1,600. After hitting a four-month high at $1,680 two weeks ago, ETH/USD has mostly been consolidating since then.
Key Economic Data Ahead
Traders are bracing themselves for key economic data releases this week from the United States including consumer confidence report later today and Federal Reserve policy meeting on Wednesday.
Technical Analysis: RSI Floor Tested
As can be seen from BTC/USD daily chart analysis above, today’s drop saw BTC move closer to its price floor at $22,500 with the relative strength index (RSI) hitting its own floor at 68.78 – marginally above its long-term support point at 68.00. A ceiling of 77 for bulls rejecting an earlier breakout could be possible if prices consolidate until fundamentals settle this week.
The market is awaiting more key economic news that could affect Bitcoin and Ethereum trading this week as both digital assets currently sit lower than their previous highs last month and will need to break out of consolidation cycles before gaining bullish momentum again soon.