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Bitcoin rallied above $21,000 on Jan. 17 as markets reacted to better-than-expected Chinese gross domestic product (GDP) numbers. The economic publication comes as US traders also returned to action, following the sighting of the Martin Luther King Jr. Day celebration. Ethereum briefly rose above $1,600 earlier in the session.

Bitcoin

bitcoin (BTC) climbed back above the $21,000 mark on Tuesday as markets reacted to the latest GDP figures from China.

Figures from the world’s second-largest economy showed gross domestic product rose 3% last year, better than the 2.8% expected.

As a consequence of this, BTC/USD hit a high of $21,360.87 earlier in the day, less than 24 hours after hitting a low of $20,715.75.

BTC/USD – Daily Chart

Looking at the chart, today’s price rebound has brought bitcoin closer to its long-term resistance level of $21,400.

This ceiling has been in place for two months and was slightly exceeded over the weekend.

The 14-day Relative Strength Index (RSI) continues to move near a high of 90.00 and is expected BTC the bulls intend to climb above $21,400, this ceiling on the RSI must be broken first.

Ethereum

In addition to BTCethereal (ETH) climbed higher during today’s session, with prices briefly breaking above the $1,600 level

After bottoming out at $1,529.57 to start the week, ETH/USD hit an intraday high of $1,603 in the early hours of the morning.

Prices have since fallen, and at the time of writing, the world’s second largest cryptocurrency is trading at $1,569.75.

ETH/USD – Daily Chart

Overall, with prices clearly overbought and bullish momentum seemingly at its peak, many expect a reversal to be underway.

Currently, the 14-day RSI sits at 83.84, which is its highest level since August 2020, when the price was trading below $1,200.

While there are still some long-term bulls, it is likely that Ethereum could consolidate until price strength is in more neutral territory.

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Could we see Ethereum going down in the next few days? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic perspective to market analysis. He was previously a brokerage manager and online trading educator. Currently, he acts as a commentator in various asset classes including Crypto, Stocks, and FX, while also being a founder of a startup.




Image credits: Shutterstock, Pixabay, Wiki Commons

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