Bitcoin on Thursday reached a four-week high as its price surged above $18,000 just hours before the release of the upcoming U.S. inflation report. This increase in value comes as many market analysts and experts anticipate that today’s figures will reveal a significant decrease in consumer prices. Additionally, Ethereum, another popular cryptocurrency, also experienced gains, rising above the $1,400 mark.
This upward trend in both Bitcoin and Ethereum suggests that investors are bullish on the future of these digital assets
Bitcoin Price Analysis
On Thursday, Bitcoin (BTC) experienced a significant price increase as it surpassed the $18,000 mark while markets were bracing for a potential decrease in U.S. consumer prices. The BTC/USD pair reached an intraday high of $18,268.55 earlier in the session, which represents a significant increase in value compared to the low of $17,337.99 that it had reached less than 24 hours before.
This movement saw Bitcoin reaching its highest point since December 14th, when it had reached a peak of $18,385. This substantial increase in the price of Bitcoin could be attributed to a combination of factors such as investor sentiment, market speculation, and global economic conditions.
An examination of the chart indicates that the rally in Bitcoin’s price occurred as the 14-day relative strength index (RSI) moved further into overbought territory.
The RSI is a technical indicator that is used to measure the strength of a particular asset’s price action, with values above 70 generally considered to be overbought. As of the time of writing, the index is now sitting at 75.98, which is its highest level since October 2021.
This suggests that the buying pressure on Bitcoin is currently quite strong. However, it’s worth noting that depending on the inflation rate that is reported this afternoon, there could be a reversal in the price of Bitcoin, as the earlier momentum may have already peaked
Ethereum Price Rises in Green
In a recent trading session, the price of Ethereum began a substantial upward trend, breaking through the key resistance level of $1,320. This allowed Ethereum to clear the $1,350 resistance zone, placing it in a positive zone similar to Bitcoin, which was trading above the $17,200 level.
The upward momentum continued as the price of Ethereum even surpassed the $1,400 resistance zone, reaching a high of $1,437. The price has since consolidated these gains and is currently trading above the $1,400 level, as well as above the 100-hour simple moving average.
This bullish trend is further reinforced by the presence of a major bullish trend line forming near the $1,365 level on the hourly chart of ETH/USD. This trend line could serve as a support level for Ethereum in the future.
A recent downward adjustment occurred below the $1,420 mark. Price fell below the 23.6% Fibonacci retracement level of the rising trend from the $1,437 high to the swing low of $1,351.
The price is steady, though, around the $1,400 region. Near the $1,435 mark, there is immediate resistance. Near the $1,500 mark, there is the next significant barrier. A breakout to the upside over the $1,500 resistance area could signal the start of further rises.
In the current scenario, the price may increase toward the resistance level of $1,550. If the upward momentum continues, the price could potentially reach even higher levels, such as $1,600 or $1,620, in the short-term future. When making any investment, it’s important to do your research and consider your risk tolerance. Bitcoin and Ethereum can be highly volatile and their value can fluctuate greatly in a short period. Before investing, it’s important to understand the potential risks and rewards of investing in Bitcoin.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.