Bitcoin rallied back above $21,000 on Jan. 17 as markets reacted to better-than-expected Chinese gross domestic product (GDP) numbers. The economic release comes as US traders were back in action as well, following the Martin Luther King Jr. Day celebration sighting. Ethereum briefly rose above $1,600 early in the session.
Bitcoin
bitcoin (BTC) rose back above the $21,000 mark on Tuesday as markets reacted to the latest China GDP figures.
Figures from the world’s second-largest economy showed gross domestic product rose 3% last year, above the 2.8% expected.
As a result of this, BTC/USD rose to a high of $21,360.87 earlier in the day, less than 24 hours after falling to $20,715.75.
Looking at the chart, today’s price rally has pushed Bitcoin closer to its long-term resistance level of $21,400.
This top has been in place for the past two months and was broken marginally over the weekend.
The 14-day RSI continues to hover near a 90.00 ceiling and should BTC If the bulls intend to move above $21,400, this ceiling must be broken first on the RSI.
Ethereal
In addition to BTCethereal (ETH) rose higher in the session today, with prices briefly moving past the $1,600 level.
After a minimum of $1,529.57 to start the week, ETH/USD rose to an intraday high of $1,603 in the early hours of this morning.
Since then, prices have dropped, and as of this writing, the world’s second-largest cryptocurrency is trading at $1,569.75.
Overall, with prices significantly overbought and bullish momentum seemingly at its peak, many are expecting a reversal.
Currently, the 14-day RSI sits at 83.84, which is its highest level since August 2020, when the price was trading below $1,200.
Although there are still long-term bulls, Ethereum is likely to consolidate until price strength is in more neutral territory.
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Could we see Ethereum move lower in the coming days? Leave your thoughts in the comments below.
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