Days after falling to a 6-month low, bitcoin rose for a second consecutive session, as prices slowly approached its key level of $40,000. Today’s gain in BTC comes as the global crypto market cap was 4.7% higher from yesterday’s session, as of writing.
Bitcoin
The world’s largest cryptocurrency hit an intraday high of $38,415.90 on Wednesday, which is its highest level in the last six sessions.
Today’s move comes as the 14-day RSI on BTC/USD broke out of its recent resistance level of 30, which typically signifies prices being oversold, and is now tracking at 38.
Although it remains relatively oversold, this short-term bullish momentum has led to a slow curve in the 10-day EMA (red), with the potential for an upward crossover with the 25-day EMA (blue ) gradually increasing.
If this were to occur, history shows that there could be increased buying pressure, as prices would likely break above the $40,000 ceiling. Which is an area where previous bull runs have started.
However, as we approach this level, there looks to be some resistance ahead, with the RSI indicator showing that a ceiling of 41 could pour cold water on the current streak.
This, if the recent upside pressure is not enough to overcome the upcoming hurdle.
Ethereum
ETH prices were trading close to 10% higher during the course of Wednesday’s session, hitting an intraday high of $2,648.49 in the process.
Similar to bitcoin, ETH/USD broke above its recent 14-day RSI lows and is currently sitting slightly above the 34 level.
This gain in strength has led to prices hitting a 5-day high, now on the periphery of breaking into the 0.236 Fibonacci level.
As you can see from the chart below, this fib level, which is $2,675.00, has spawned several bull runs in the past.
