• Bitcoin (BTC) rallied to a two-month high earlier in today’s session, as prices climbed above the $19,000 mark.
• Ethereum (ETH) also significantly rose on Friday, with price moving above the $1,400 mark.
• Prices of ETH are now deep in overbought territory, with the RSI index tracking at a level of 75.54.
Cryptocurrencies have been on a roll this week, with Bitcoin and Ethereum both experiencing significant gains. Bitcoin (BTC) surged above the $19,000 mark in today’s session, hitting a two-month high in the process. This marks the strongest point for the world’s largest cryptocurrency since November 8, when price was above $20,000.
The rally came as the 14-day relative strength index (RSI) rose to a peak of 82.00, which was its highest mark in over a year. In addition to this, the upwards trend on the 10-day (red) and 25-day (blue) moving averages continued to mature, thus extending bullish momentum. Despite this, prices are now well beyond overbought, which could mean that bears are lurking and preparing for reentry.
Ethereum (ETH) was also on the rise, with price moving above the $1,400 mark. ETH/USD hit an intraday high of $1,432.28 in today’s session, which comes less than a day after trading at a bottom of $1,378.42. As with bitcoin, this spike in price has pushed ethereum to its highest point since November 8, when it hit a high of $1,580.
The bullish sentiment for ETH was also reflected in its RSI index, which is now deep in overbought territory at a level of 75.54. Earlier gains have already begun to slip, as previous bulls have begun taking profits in anticipation of a potential reversal.
Overall, the recent surge in both Bitcoin and Ethereum has been driven by traders reacting to Wednesday’s U.S. inflation report, which dropped to 6.5%. With prices now significantly above the $19,000 and $1,400 mark respectively, it remains to be seen if this rally is sustainable in the long-term or if we will see a reversal in the near future.