Bitcoin continued to hover around the $23,000 level on Jan. 23, as bullish sentiment remained high in markets. Over the weekend the world’s largest cryptocurrency rose to its strongest level since August, with bulls moving to consolidate these gains. Ethereum also traded in the green today, remaining above $1,600 in the process.
Bitcoin (BTC) continued to trade near a five-month high to start the week, as sentiment in crypto markets remained bullish.
Following a low of $22,387.90 on Sunday, BTC/USD hit an intraday peak of $23,056.73 earlier in today’s session.
On Saturday, BTC rose to a high of $23,375, which was its strongest point since August 18, and it appears as though bulls are hoping to recapture this point.
BTC/USD – Daily Chart
In order to achieve this, the 14-day relative strength index (RSI) will likely need to move back towards a ceiling at 91.00.
Currently, the index is at the 85.26 level, which is already overbought, and this could lead to some opting to secure gains and abandon previous positions.
As of writing, BTC is trading at $22,876.55, which is marginally higher than Sunday’s peak.
Ethereum (ETH) also appeared to be consolidating the weekend’s gains, with prices remaining above the $1,600 mark.
On Monday, ETH/USD has risen so far to a peak of $1,658.02, which is relatively close to Saturday’s four-month high at $1,680.
Today’s peak comes as the world’s second largest cryptocurrency rebounded from a floor around the $1,610 mark.
ETH/USD – Daily chart
Looking at the chart, the rebound took place following a failed breakout of a support point of 75.00 on the RSI indicator.
As of writing, the indicator is tracking at 75.23, with the next visible resistance level at 80.00 zone.
ETH bulls will likely be still targeting a move above $1,700, and for this to occur, the 80.00 mark must first be overcome.
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Could ethereum climb above $1,700 this week, despite prices being overbought? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also being a startup founder.
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