Bitcoin, Ethereum Technical Analysis: BTC, ETH Extend Gains After US Inflation Report
Bitcoin (BTC) appears to be trading in an area above $22000 on Wednesday as traders continue to recognize new inflation reports in the United States. After hitting a low of $21,632.39 on Tuesday, Bitcoin managed to reach an intraday high of $22,293.14 in the first session today and today’s move pushed the world’s largest cryptocurrency towards a key resistance level of $22500. Looking at the charts, we can say that the 14-day Relative Strength Index is also seen hovering around its own high at 60.00 and at the time of writing this price strength is currently at a reading of 51.96, which is the highest it has been in the past 7 days. I have the best and strongest point of it. The question now is whether it is necessary to sustain the momentum and there is a strong possibility that bitcoin may not only break this $22500 level but may even be able to touch the $23000 level.
If we talk about Ethereum, we can say that it was also present in the green in today’s session and managed to touch a high of $1,562.03 earlier in the day after trading at a low of $1,501.80. In less than 24 hours, the move resulted in Ethereum briefly breaking out of the $1,550 price range after breaking 1 floor at $1,505, while earlier gains have largely been negated. And now the world’s second largest cryptocurrency is trading at $1,557.25, which appears to be a bit above that range and at the time of writing we see it hovering at 49.86 on the 14-day Relative Strength Index. which is below its range of 50.00. For Ethereum bulls to definitely head back towards the $1600 mark, this ceiling must first be broken.
