• Bitcoin raced to a fresh multi-week high on Wednesday, in anticipation of the U.S. inflation report due on Thursday.
• Ethereum also rose marginally higher on the day, trading below a long-term ceiling of $1,350.
• The 14-day relative strength index for both Bitcoin and Ethereum remains below key resistance points, suggesting further upside potential.
The cryptocurrency markets have been on a rollercoaster ride in recent weeks, with Bitcoin, Ethereum and other major coins experiencing some major price swings. On Wednesday, Bitcoin (BTC) raced to a fresh multi-week high, as traders looked ahead to Thursday’s U.S. inflation report. Ethereum (ETH) also saw some marginal gains, but remains below a key resistance point of $1,350.
The U.S. inflation rate is expected to fall to 6.5% in December, down from 7.1% the prior month. This could provide further impetus for Bitcoin and other cryptocurrencies, as investors look to the emerging asset class to gain exposure to inflation-hedging assets.
At the same time, the 14-day relative strength index (RSI) for both Bitcoin and Ethereum remain below key resistance points, suggesting further upside potential. For Bitcoin, the RSI is currently tracking at 63.80, below a ceiling of 64.00. For Ethereum, the RSI is at 68.73, below a point of resistance at the 70.00 mark.
In the near-term, traders will be watching closely for the outcome of Thursday’s U.S. inflation report. If figures come in line with expectations, it could provide a strong boost for Bitcoin and other cryptocurrencies. The markets could also see further upside if the RSI for both coins break out of their respective ceilings.
Overall, the cryptocurrency markets remain volatile and unpredictable. Investors should take care to monitor for any major developments before entering into any positions. With the U.S. inflation report due tomorrow, it could be a pivotal day for the crypto markets.