Bitcoin, Ethereum Technical Analysis: BTC, ETH Plunge, as Profit Takers Swoop In

Bitcoin retreated from a multi-week high on Tuesday, after cryptocurrencies entered overbought territories. Traders have seemingly opted to capture recent profits, ahead of key data points later this week. Ethereum slipped below $1,700.

Bitcoin

Bitcoin (BTC) edged below the $28,000 level during today’s session, as traders moved to secure Monday’s gains.

After surging to a peak of $28,494 to start the month of October, BTC/USD slipped to a low of $27,374 earlier in the day.

The decline came after the cryptocurrency climbed to its highest level since August 17, however this momentum was also its downfall.

BTC/USD – Daily Chart

This was owing to the fact that Monday’s move pushed the 14-day relative strength index (RSI) above the 70.00 level, and into overbought positions.

At the time of writing, price strength is now tracking at 59.93, which is marginally above a support point of 57.00.

In the event that this aforementioned floor is broken, there is a good chance that BTC could slip below $27,000 in the coming days.

Ethereum

Ethereum (ETH) was also a victim of today’s profit taking, with price once again falling below the $1,700 mark.

ETH/USD sank to a bottom at $1,646.08 on Tuesday, less than 24 hours after peaking at a seven-week high of $1,733.51.

The decline appears to have come after ethereum bulls were unable to force a breakout above a ceiling at $1,730.

ETH/USD – Daily Chart

Looking at the chart, the sell-off engulfed gains from the past three days, and came as the RSI fell below a floor at 60.00.

Currently, the world’s second largest cryptocurrency is trading at $1,656.73, and appears to be heading for a floor at $1,620.

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