Bitcoin (BTC) regained the $21,000 level on Tuesday, as markets responded to China's latest GDP figures.
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Bitcoin rebounded to the $21,000 level on January 17 as markets responded to better-than-expected Chinese GDP figures. The economic release comes as traders in the United States resume trading after the Martin Luther King Jr. celebration. Earlier in the session, Ethereum nearly surpassed $1,600.
Bitcoin
Bitcoin (BTC) regained the $21,000 level on Tuesday, as markets responded to China's latest GDP figures.
The second-largest economy in the world reported that its gross domestic product increased by 3% last year, which was more than the 2.8% predicted.
As a result, BTC/USD reached a high of $21,360.87 earlier in the day, less than 24 hours after hitting a low of $20,715.75.
Daily Chart- BTC/USD (Source- Trading View)
According to the chart, today's price increase has moved bitcoin closer to its long-term resistance level of $21,400.
This ceiling has been in place for the last two months, and it was only slightly cracked over the weekend.
If BTC bulls want to move above $21,400, they must first break through the 14-day relative strength index's (RSI) ceiling of 90.00, which is still in place.
Ethereum
Along with Bitcoin (BTC), Ethereum (ETH) gained ground today, briefly crossing the $1,600 level.
ETH/USD jumped to an intraday high of $1,603 this morning after hitting a low of $1,529.57 to begin the week.
The second-largest cryptocurrency in the world is currently trading at $1,569.75 after prices have since dropped.
Daily Chart- ETH/USD (Source- Trading View)
Many feel a reversal could be forthcoming since prices are substantially overbought overall and bullish momentum seems to be at its peak.
The 14-day RSI is currently tracking at 83.84, which is the highest reading since August 2020, when the price was trading below $1,200.
Even though there are still long-term bulls, it is expected that Ethereum could enter a consolidation phase before its price strength reaches a more neutral level.
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