• Bitcoin (BTC) climbed back above the $21,000 mark on Tuesday following better-than-expected Chinese gross domestic product figures.
• Ethereum (ETH) also rose in today’s session, with prices briefly moving beyond the $1,600 level.
• The 14-day relative strength index (RSI) continues to hover close to a ceiling of 90.00, and should BTC bulls intend to climb above $21,400, this ceiling on the RSI must first be broken.
On Tuesday, Bitcoin (BTC) prices climbed back above the $21,000 mark as markets reacted to better-than-expected Chinese gross domestic product (GDP) figures. The economic release comes as U.S. traders also returned to action, following the observation of the Martin Luther King Jr. Day celebration. As a result of this, BTC/USD rose to a high of $21,360.87 earlier in the day, less than 24 hours after falling to a bottom at $20,715.75.
Meanwhile, Ethereum (ETH) prices rose in the same session, with prices briefly moving beyond the $1,600 level. Following a low of $1,529.57 to start the week, ETH/USD surged to an intraday peak of $1,603 in the early hours of this morning. Prices have since slipped, and as of writing, the world’s second largest cryptocurrency is trading at $1,569.75.
Looking at the Bitcoin chart, today’s rebound in price has pushed BTC closer to its long-term resistance level of $21,400. This ceiling has been in place for the past two months, and was marginally broken over the weekend. The 14-day relative strength index (RSI) continues to hover close to a ceiling of 90.00, and should BTC bulls intend to climb above $21,400, this ceiling on the RSI must first be broken.
Overall, with prices significantly overbought, and with bullish momentum seemingly at its peak, many expect a reversal could be on its way. Currently, the market is still in its early stages of recovery, and it remains to be seen if the current bullish sentiment can be sustained. Investors should be wary of any sudden dips in prices, and should remain vigilant in monitoring both BTC and ETH prices in the coming days.