Bitcoin, Ethereum Technical Analysis: BTC, ETH Rally as US Government Shutdown Fears Worry Stock Markets
Bitcoin rebounded strongly on Wednesday, as U.S. indices continued to fall ahead of a potential government shutdown. The U.S. government could run out of money later this week, if a deal is not reached to increase funding. Ethereum also rebounded higher in today’s session.
Bitcoin
Bitcoin bounced from a recent support point in today’s session, as traders fled to cryptocurrencies ahead of a potential U.S. government shutdown.
Following a low of $26,090.71 on Tuesday, BTC/USD surged to a peak of $26,640.40 earlier in today’s session.
The move comes as bulls recently rejected a breakout below the $26,000 level, and now look set to test the $27,000 ceiling.
Bitcoin chart by TradingView
From the chart, it appears that the rebound in price came as a result of the relative strength index (RSI) rising above a ceiling of its own at 51.00.
As of writing, price strength is tracking at 52.26, with the next visible point of resistance at the 55.00 mark.
Moving averages had recently begun to consolidate, however this rally could see the short-term, 10-day (red) trend line begin to climb higher.
Ethereum
In addition to bitcoin, ethereum (ETH) also surged on Wednesday, with the cryptocurrency reentering the $1,600 region.
ETH/USD peaked at $1,626.65 earlier in the day, which comes less than 24 hours after falling to a low of $1,580.17.
Wednesday’s gain comes as ETH climbed higher for a third straight day, breaking out of a resistance level of $1,620 in the process.
Ethereum chart by TradingView
Traders will now likely be targeting a higher point of resistance at $1,670, however there are first some obstacles to overcome.
A ceiling of 51.00 on the RSI indicator will be the first hurdle, with price strength currently hovering just below this point.
