Bitcoin, Ethereum Technical Analysis: BTC, ETH Extend Gains Following US Inflation Report
Bitcoin traded above $22,000 on Feb. 15, as markets continue to react to the latest U.S. inflation report. The consumer price index rose 0.5% in January, following a gain of 0.1% the month prior. Overall, the annual rate of inflation came in at 6.4%, which, although lower than December’s sum of 6.5%, was higher than the expected 6.2%. Ethereum also rallied on hump-day.
Bitcoin
Bitcoin (BTC) remained above $22,000 on Wednesday, with traders continuing to digest the latest inflation report in the United States.
Following a low of $21,632.39 on Tuesday, BTC/USD rallied to an intraday peak of $22,293.14 earlier today.
Today’s move pushes the world’s largest cryptocurrency back towards a key resistance level of $22,500.
Looking at the chart, the 14-day relative strength index (RSI) also appears to be edging closer to a ceiling of its own at 60.00
As of writing, price strength is currently at a reading of 51.96, which is its strongest point in the last seven days.
Should this momentum be maintained, there is a strong possibility that BTC could not only break $22,500, but could also collide with the $23,000 mark.
Ethereum
Ethereum (ETH) was also in the green in today’s session, as prices broke out of a recent point of resistance.
ETH/USD hit a high of $1,562.03 earlier in the day, which comes less than 24 hours after trading at a bottom of $1,501.80.
As a result of this move, ethereum briefly broke out of a price ceiling at $1,550, after bouncing off a floor of $1,505.
Earlier gains have somewhat eased, with ETH now trading at $1,557.25, which is marginally higher than the aforementioned ceiling.
At the time of writing, the RSI is hovering at 49.86, which is below a ceiling of its own at 50.00.
In order for ethereum bulls to head back towards the $1,600 mark, this ceiling will first need to be broken.
Register your email here to get weekly price analysis updates sent to your inbox:
Do you expect further rallies in price now that the inflation report has been released? Leave your thoughts in the comments below.
