Bitcoin, Ethereum Technical Analysis: BTC Edges Closer to $22,000 Ahead of US Inflation Report
Bitcoin rebounded in Tuesday’s session, as markets prepared for this afternoon’s U.S. inflation report. It is expected that the annual rate of inflation in the United States dropped to 6.2% in January, down 0.3% from the month prior. Ethereum also rallied, climbing back above $1,500.
Bitcoin
Bitcoin (BTC) rebounded from recent losses in today’s session, as prices moved closer to the $22,000 level.
BTC/USD hit an intraday high of $21,849.01 earlier in the day, which comes after falling to a low of $21,460.09 on Monday.
Today’s action saw bitcoin snap a two-day losing streak, and comes as prices rejected a full breakout of a floor at $21,500.
Looking at the chart, the 14-day relative strength index (RSI) also rejected a break of its own, with the index remaining above its support at 44.00.
As of writing, price strength is at a reading of 47.86, with a resistance of 50.00 nearby.
In order for BTC bulls to take price above the $22,000 mark, this point of resistance will need to be broken.
Ethereum
Etheruem (ETH) climbed back above $1,500 on Tuesday, as it also reentered a recent support point.
Following a low of $1,470.02 to start the week, ETH/USD rallied to a peak of $1,514.08 earlier in today’s session.
As a result of this move, the world’s second largest cryptocurrency is once again trading above its long-term floor at $1,505.
Despite this, overall market momentum remains bearish, with the 10-day (red) moving average (MA) extending its death cross with its 25-day (blue) counterpart.
What has somewhat helped to ease the current market sentiment is the floor of 44.00 on the RSI indicator.
Should the floor break, there is a strong possibility that ethereum will be heading for the $1,450 mark.
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Could cryptocurrencies rally after today’s inflation report? Leave your thoughts in the comments below.
