Ahmed Ali On Tuesday, Bitcoin managed to surpass the $26,000 mark as the market awaited the latest US inflation data. It is anticipated that consumer prices for May will reach 4.1%, which is double the Federal Reserve’s target of 2%. Meanwhile, Ethereum remained below $1,800.
Bitcoin
Ahead of the imminent inflation report in the United States, Bitcoin (BTC) made a recovery above $26,000.
After starting the week at a low of $25,686.04, BTC/USD swiftly climbed to a peak of $26,261.14 earlier today.
This upward movement brought Bitcoin close to a recent resistance level at $26,300, which is one of the remaining obstacles preventing the bulls from pushing towards $27,000.
BTC/USD – Daily Chart
To reach this level, it will be necessary to break through the ceiling on the relative strength index (RSI).
The RSI currently stands at 44.02, while the critical level to overcome is 47.00.
Additionally, the 10-day (red) moving average needs to change direction and veer away from its current downward trend.
Ethereum
In the meantime, Ethereum (ETH) experienced a slight increase but remained below $1,800.
ETH/USD rose to a high of $1,757.89 earlier in today’s trading session, following a dip to $1,723.09 the day before.
This recent surge occurred as the bulls took charge at a support level of $1,730, causing the RSI to rebound from its own support level at 38.00.
ETH/USD – Daily Chart
At present, the price strength on the RSI stands at 39.33, with the next notable resistance level at 43.00.
If the index surpasses the aforementioned ceiling, there is a strong possibility that ETH will climb to $1,800.
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What are your thoughts on the likelihood of Ethereum reaching $1,800 in the coming days? Share your opinions in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about cryptocurrency market analysis
Q: What is the significance of Bitcoin surpassing $26,000 before the US inflation report?
A: Bitcoin rising above $26,000 indicates positive market sentiment and anticipation of the US inflation report. It suggests that investors are closely monitoring the report’s impact on cryptocurrency prices.
Q: Why is Ethereum still trading below $1,800?
A: Ethereum’s trading below $1,800 could be attributed to various factors, including market demand, overall market conditions, and investor sentiment. It indicates that there might be resistance preventing Ethereum from surpassing the $1,800 mark.
Q: What are resistance levels and support levels mentioned in the technical analysis?
A: Resistance levels are price levels at which an asset often faces selling pressure, making it difficult to surpass. On the other hand, support levels are price levels at which an asset tends to find buying interest and prevents it from falling further. These levels are important indicators for traders to determine potential price movements.
Q: How is the Relative Strength Index (RSI) used in technical analysis?
A: The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Traders use the RSI to identify overbought or oversold conditions in an asset. It helps assess the strength of a price trend and potential trend reversals.
Q: Is there a possibility of Ethereum reaching $1,800 in the upcoming days?
A: The text suggests that if Ethereum’s price strength continues to increase and surpasses the resistance level at 43.00, there is a strong possibility of Ethereum climbing to $1,800. However, market conditions and other factors may influence its actual price movement.
More about cryptocurrency market analysis
- Bitcoin Price Analysis
- Ethereum Technical Analysis
- US Inflation Report
- Relative Strength Index (RSI) Explained
- Cryptocurrency Trading Guide
