On January 17, when markets responded to higher-than-anticipated Chinese GDP statistics, Bitcoin rose back above $21,000. The economy report is released as American traders are starting to trade again after the Martin Luther King Jr. Day holiday. Early in the session, the price of Ethereum temporarily surpassed $1,600.
Bitcoin
Tuesday saw a return of Bitcoin (BTC) above the $21,000 barrier as markets reacted to the most recent GDP data from China.
According to data from the second-largest economy in the world, GDP increased by 3% last year rather than the 2.8% predicted.
As a result, less than 24 hours after hitting a low of $20,715.75, BTC/USD increased to a high of $21,360.87 earlier in the day.
Looking at the price chart, today’s price increase has brought bitcoin one step closer to the $21,400 long-term resistance level.
Over the weekend, a little crack in the ceiling that had been in existence for the previous two months was noticed.
In order for BTC bulls to move above $21,400, the 14-day relative strength index (RSI), which is still hovering near a ceiling of 90.00, must first be breached.
Ethereum
In addition to BTC, ethereum (ETH) prices also increased during today’s session, temporarily crossing the $1,600 mark.
In the early hours of this morning, ETH/USD climbed to an intraday peak of $1,603 after hitting a low of $1,529.57 to start the week.
Since then, prices have dropped, and as of this writing, the second-largest cryptocurrency in the world is trading at $1,569.75.
Overall, many believe a reversal may be imminent because prices are notably overbought and bullish momentum appears to be at its pinnacle.
The 14-day RSI is currently tracking at 83.84, which is the highest reading since August 2020, when the price was trading under $1,200.
Despite the fact that there are still long-term bulls, it is likely that ethereum will enter a consolidation phase before the price strength reaches a more neutral level.