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 (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.
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 (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.
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.