Bitcoin raced to a fresh multi-week high on Wednesday, as markets turned their attention to tomorrow’s U.S. inflation rate report. Thursday’s report is expected to show that consumer prices have fallen to 6.5%, down from 7.1% the month prior. Ethereum also rose marginally higher in the day.
Bitcoin (BTC) rallied above a key resistance level on Wednesday, ahead of tomorrow’s U.S. inflation report.
Following a low of $17,226.64 on Tuesday, BTC/USD raced to a peak of $17,493.32 earlier in today’s session.
As a result of the move, the world’s largest cryptocurrency climbed to its strongest point since December 15.
BTC/USD – Daily Chart
Looking at the chart, today’s price surge came as the 14-day relative strength index (RSI) broke out of a resistance point at the 60.00 mark.
Currently, the index is tracking at 63.80. This comes as BTC continues to hover around its own ceiling at the $17,400 mark.
In order to move closer to the $18,000 zone, the RSI will first need to move beyond a ceiling of 64.00 on the RSI.
Ethereum (ETH) was also marginally higher in today’s session, with prices continuing to trade below a long-term ceiling
ETH/USD hit a high of $1,342.76 earlier in the day, less than 24 hours after trading at a low of $1,324.97.
Overall, ethereum remains below a resistance point of $1,350, with many expecting prices to move after the release of U.S. inflation figures tomorrow.
ETH/USD – Daily Chart
As can be seen from the chart, the consolidation below this price ceiling comes as the RSI continues to trade under a hurdle of its own.
Price strength is now tracking at the 68.73 level, which is under a point of resistance at the 70.00 mark.
ETH bulls are likely still targeting a move beyond $1,400, however, in order for this to happen, the RSI level of 70.00 must first be overcome.
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Will cryptocurrency prices surge following the release of inflation figures? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
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