• Bitcoin consolidated on Jan. 16, as U.S. markets closed in celebration of the Martin Luther King Jr. Day holiday celebration.
• Ethereum also retreated from recent highs in today’s session.
• Bitcoin and Ethereum prices were significantly overbought, with the RSI for both cryptocurrencies hovering in overbought territory.
The Martin Luther King Jr. Day holiday was celebrated on Jan. 16, and the U.S. markets closed in celebration of the day. As a result, Bitcoin (BTC) and Ethereum (ETH) consolidated as traders moved to secure recent gains.
Bitcoin had just risen above $21,000 for the first time since November, however, prices failed to break out of a key resistance level. BTC/USD dropped to an intraday low of $20,681.98, which comes as the 14-day relative strength index (RSI) hovered in overbought territory. Ethereum also retreated from recent highs in today’s session, as price strength failed to move north of the 90.00 mark. ETH/USD dropped to a bottom of $1,529.79, which comes after trading at a high of $1,579.48 on Sunday. Ethereum had also failed to sustain a move above a ceiling at $1,580, giving way to a resurgence of some bearish sentiment.
It is likely that further declines could be on the cards this week, with a floor of $20,000 a potential target for sellers. Prices were significantly overbought, with the index at its highest point since January 2021. Now tracking at 83.46, the next visible floor seems to be at the 70.00 mark, which if hit, could see ETH trading near $1,475. As the markets close for the Martin Luther King Jr. Day holiday, traders are likely to take a pause and wait to see which way prices move next.