• Bitcoin rose to a four-week high on Thursday, as price surged above $18,000 hours before the upcoming U.S. inflation report.
• Ethereum also moved higher, climbing above $1,400 in the process.
• Bitcoin and Ethereum’s price rally occurred as the 14-day relative strength index (RSI) continued to move deeper into overbought territory.
The cryptocurrency market has been on a tear in recent weeks, as Bitcoin and Ethereum have seen some impressive gains. On Thursday, Bitcoin rose to a four-week high, with price surging above $18,000 just hours before the upcoming U.S. inflation report. Ethereum also saw some gains, climbing above $1,400 in the process.
The Bitcoin 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.
Meanwhile, Ethereum also saw a surge in price, with ETH/USD jumping 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. 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.
Overall, the cryptocurrency market appears to be in a strong bullish trend, with both Bitcoin and Ethereum seeing impressive gains. The upcoming U.S. inflation report could cause a reversal in the market, however, so investors should be mindful of the potential risks involved in trading cryptocurrencies. With that being said, many investors are optimistic that the market will continue its current bull run in the near future.