Bitcoin rose to a four-week high on Thursday, as price surged above $18,000 hours before the upcoming U.S. inflation report. This comes as many expect today’s figures to show a considerable drop in consumer prices. Ethereum also moved higher, climbing above $1,400 in the process.
Bitcoin (BTC) surged above $18,000 on Thursday, as markets prepared for a further drop in U.S. consumer prices.
BTC/USD raced to an intraday high of $18,268.55 earlier in today’s session, less than 24 hours after trading at a low of $17,337.99.
Today’s move saw bitcoin climb to its strongest point since December 14, when prices were at a peak of $18,385.
Looking at the chart, the rally took place as the 14-day relative strength index (RSI) continued to move deeper into overbought territory
As of writing, the index is now tracking at 75.98, which is its highest mark since October 2021.
Depending on this afternoon’s inflation rate, there could be a reversal in BTC, as earlier momentum may have already peaked.
Ethereum (ETH) was also significantly higher in today’s session, with prices moving to a two-month high.
Following a low of $1,323.58 on Wednesday, ETH/USD jumped to a peak of $1,408.13 earlier in the day.
As a result of this rally, the world’s second largest cryptocurrency is now trading at its strongest position since November 8.
Like with bitcoin earlier, the move has occurred as the RSI broke out of a ceiling at 69.00, and it is currently tracking at 75.89.
In addition to this, the 10-day (red) moving average has continued its upwards crossover versus its 25-day (blue) counterpart.
Should this momentum maintain this trajectory, then the next target for bulls will likely be a ceiling of $1,470.
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Do you expect the inflation report to send cryptocurrencies even higher? Leave your thoughts in the comments below.