Hideo Nakamura Bitcoin approached a 14-day peak this Thursday, as market participants await the forthcoming retail sales data from the United States. A 0.2% increase is anticipated for August, representing a decline from the 0.7% rise observed in the preceding month. Concurrently, Ethereum maintained positive momentum, surpassing a crucial support level earlier in the session.
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Bitcoin
Maintaining positive territory for a second successive trading day, Bitcoin is being closely monitored in relation to the imminent U.S. retail sales report. The expectation is for a decline in consumer expenditure, a development that is coincident with the inflationary uptick witnessed last month.
After registering a low of $26,084.80 on the preceding Wednesday, the BTC/USD pair experienced a surge, reaching an intraday high of $26,529.50.
BTC/USD – Daily Technical Chart
In terms of the chart analysis, the upswing occurred as the relative strength index (RSI) broke through a resistance level at 45.00.
As of this writing, the price strength indicator is recorded at 49.04, slightly below a resistance ceiling set at 53.00.
Should the price surpass this level, the likelihood of Bitcoin appreciating beyond the $27,000 mark in the near term increases substantially.
Ethereum
Ethereum (ETH), like its Bitcoin counterpart, also exhibited a bullish trajectory this Thursday, advancing beyond a recently established support level.
Earlier in the session, the ETH/USD pair peaked at $1,635.82, not long after touching a low of $1,593.11 less than a day prior.
This advance propelled Ethereum, the world’s second-largest cryptocurrency, above a significant price threshold at $1,620.
ETH/USD – Daily Technical Chart
In a manner akin to Bitcoin, Ethereum’s rally was associated with its RSI transcending a resistance level, which in this case was set at 40.00; the RSI now stands at 44.00.
The recent upswing enhances the likelihood of a bullish crossover, suggesting that should this trend persist, ETH could edge closer to the $1,700 mark.
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Do you believe Ethereum will reach $1,700 by week’s end? We invite you to share your perspectives in the comments section.
Frequently Asked Questions (FAQs) about Technical Analysis of Bitcoin and Ethereum
What is the main focus of the technical analysis?
The primary focus of the technical analysis is to provide an in-depth view of the recent price trends for Bitcoin and Ethereum. It delves into key support and resistance levels, as well as indicators like the Relative Strength Index (RSI) for each cryptocurrency.
How does the U.S. Retail Sales Data relate to Bitcoin’s price?
The text suggests that market participants are closely monitoring the upcoming U.S. retail sales report. The expectation of a decline in consumer spending, in the context of recent inflation, is considered relevant for Bitcoin’s price movements.
What are the significant price thresholds mentioned for Bitcoin and Ethereum?
For Bitcoin, a crucial price level to watch is the $27,000 mark, which it is likely to surpass if it breaks a resistance ceiling set at an RSI of 53.00. For Ethereum, a significant price level is the $1,700 mark, which becomes increasingly possible if the bullish momentum persists.
What is the Relative Strength Index (RSI) and why is it important in this analysis?
The Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the speed and change of price movements. The RSI is significant in this text because it serves as an indicator for potential bullish or bearish market trends for both Bitcoin and Ethereum.
What does the term ‘bullish crossover’ imply for Ethereum?
A ‘bullish crossover’ refers to the scenario where a shorter-term moving average crosses above a longer-term moving average, signaling the potential for a positive price movement. In the context of this text, Ethereum approaching a bullish crossover suggests that it may edge closer to the $1,700 mark.
How can one receive weekly updates on price analyses?
To receive weekly updates on price analyses, one needs to register their email at the designated section at the end of the text. This will provide them with a summary of the week’s most impactful cryptocurrency news and market trends.
More about Technical Analysis of Bitcoin and Ethereum
- U.S. Retail Sales Data Explained
- Introduction to Technical Analysis
- Understanding the Relative Strength Index (RSI)
- Bitcoin Price History
- Ethereum Price History
- Guide to Understanding Bullish and Bearish Crossovers
- How Inflation Affects Cryptocurrency Markets
- Consumer Spending and Its Impact on Financial Markets
