Bitcoin briefly returned to the $20,000 region on Thursday, after a volatile trading day. The volatility in the cryptocurrency market comes as published data shows that inflation in the United States has risen to its highest level in more than four decades. ETH also quickly rose above $1,100.
Bitcoin
BTC slightly higher on Thursday, as prices rallied after 24 hours of turbulent trading, which sent the price down below $19,000.
Following this drop, the world’s largest crypto token rallied, reaching as high as $20,361.12 earlier in the day.
The volatility in the market followed the release of June’s inflation data, which rose 1.3% and is currently at 9.1%.
Bitcoin traders now expect the Fed to raise rates by 75 basis points later this month, which could further impact prices.
When writing, BTC/USD is currently trading at $19,801.76, which is lower than the previous high but still well above yesterday’s floor of $18,999.95.
Like on Wednesday, the 14-day RSI remains below the 41.80 resistance and this looks to be the main obstacle stopping the price from a sustained breakout.
Ethereum
ETH also faced market volatility on Thursday, when prices fell below $1,000.
The token fell to as low as $1,019 late Wednesday’s trading session, however the price recovered today, climbing to a high of $1,120.32 in the process.
Since breaking through this $1,100 threshold, the bulls have previously turned bearish, with the price now trading near $1,080.
Like bitcoin, price uncertainty is heightened due to a lack of direction in momentum, with both the 10-day and 25-day moving averages trending sideways, despite recent crossovers.
To build momentum we will likely need to see relative strength also increase, however the RSI continues to trade below its own ceiling.
Overall, ethereum is currently down 8.26% over the past seven days, however there is still some optimism that this sentiment may soon change.
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We shall see ETH falls below $1,000 before it rises above $1,200? Leave your thoughts in the comments below.
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