Bitcoin (BTC) surpassed the $21,000 mark this weekend, as investors anticipate a potential low point and growing concerns about inflation drive interest in the cryptocurrency. This milestone follows BTC crossing $20,000 in November of last year and currently trading above that range for the past two months.
Bitcoin rose above $21,000 on January 17th, due to improved Chinese GDP figures and the return of US traders after the Martin Luther King Jr. Day holiday. Additionally, Ethereum experienced a short-lived increase above $1,600 during the same period.
On Tuesday, the price of Bitcoin (BTC) once again surpassed the $21,000 mark, as markets responded to the latest Gross Domestic Product (GDP) figures from China. The data, which was released by the world’s second-largest economy, revealed that GDP growth was at 3% for the year, surpassing the expected 2.8%.
This positive economic news had a positive impact on the value of Bitcoin, with the BTC/USD exchange rate reaching a high of $21,360.87 earlier in the day. This marks a significant recovery for the cryptocurrency, as it had only just fallen to a low of $20,715.75 less than 24 hours prior.
The relationship between economic data and the value of Bitcoin is complex and not always predictable. However, the positive GDP figures from China may have instilled confidence in investors and traders, leading to an increase in buying activity and a corresponding rise in the price of Bitcoin.
It’s worth noting that Bitcoin’s recent price behavior is not only driven by economic indicators but also by a combination of various factors such as institutional and retail adoption, regulatory changes, and investor sentiment. Some experts believe that the recent rally in Bitcoin’s price is driven by institutional investors who are buying the cryptocurrency as a hedge against inflation and as a store of value. The latest GDP figures from China have provided a boost for the value of Bitcoin, but it remains to be seen if this positive trend will continue in the long-term
An analysis of the chart reveals that the recent increase in the price of bitcoin has brought it closer to its long-term resistance level of $21,400. This level has acted as a ceiling for the past two months and was briefly breached over the weekend. However, it should be noted that the 14-day relative strength index (RSI) remains close to a level of 90.00.
In order for the bulls to push the price of bitcoin above $21,400, they must first break through this ceiling on the RSI. This is an important indicator to watch as it will give an indication of the strength of the bulls and whether they have the power to push the price above the resistance level
Ethereum’s price has struggled to surpass the $1,600 resistance level. It reached a high of $1,610 but then saw a decline similar to that of bitcoin from $21,500. The decline included a clear move below the $1,580 and $1,550 support levels, as well as a break below a key bullish trend line.
The bears pushed the price below $1,545, and it is currently trading below $1,550 and the 100 hourly simple moving average, reaching as low as $1,480. It is currently consolidating its losses and has minor resistance at the $1,540 level and the 100 hourly simple moving average, with major resistance at $1,560. A break above this level could lead to a new increase in price
If the current market conditions continue, the price of Ethereum may experience an upward trend toward the $1,600 resistance level. If the upward momentum continues and the resistance level is broken, it could potentially lead to further gains and push the price toward higher levels such as $1,650 or even $1,700 in the short term. This is of course dependent on various market factors and can change quickly.
Bitcoin proves to be on the increase while the chances of a decrease are valid due to its volatile nature of it. Ethereum also experienced a little level of increment but still struggles to hit the 1,600 resistant level. It’s worth noting that the crypto market is highly volatile, and it’s essential to keep an eye on the market trends and news before making any investment decisions.
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.