Bitcoin rose above $21,000 on January 17th. This was as the market reacted to China’s Gross Domestic Product (GDP) figures surpassing expectations. The economic release comes when U.S. traders are also back in action following observations of the Martin Luther King Jr. Day celebrations, with Ethereum temporarily closing his 1,600 mark early in the session. exceeded the dollar.
Bitcoin (BTC) rose above $21,000 on Tuesday as markets reacted to China’s latest GDP figures.
Figures from the world’s second-largest economy show gross domestic product grew 3% last year, beating expectations of 2.8%.
As a result, BTC/USD hit a high of $21,360.87 earlier in the day less than 24 hours after bottoming out at $20,715.75.
Looking at the chart, today’s price rebound has pushed Bitcoin closer to the long-term resistance level of $21,400.
This cap has been in place for the past two months and was slightly breached over the weekend.
The 14-day Relative Strength Index (RSI) continues to hover around the 90.00 ceiling, and if the BTC bulls are to attempt a rally above $21,400, the RSI must first break this cap.
In addition to BTC, Ethereum (ETH) rises in today’s session, briefly above $1,600
Following an early week low of $1,529.57, ETH/USD surged to an intraday peak of $1,603 early this morning.
Prices have since fallen, and at the time of writing the world’s second largest cryptocurrency is trading at $1,569.75.
Overall, the price is significantly overbought and with bullish momentum appearing to be peaking, many expect a reversal may be on the horizon.
The 14-day RSI is currently at 83.84, the highest level since August 2020 when the price was below $1,200.
There is still a long-term bull market, but Ethereum may move into consolidation until price strength moves into more neutral territory.
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Could Ethereum drop in the next few days? Leave your thoughts in the comments below.
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