Core inflation rose 0.6%, with consumer prices rising to 8.2%, higher than the 8.1% expected. Despite this, traders seem to have breathed a sigh of relief as the uncertainty surrounding the report has now passed. Bitcoin moved closer to $20,000 following the news.
Bitcoin moved closer to the $20,000 level on Friday as uncertainty in the crypto markets eased following the latest inflation report in the United States. Despite a larger than expected rise in consumer prices, markets reacted positively as speculation surrounding the report faded.
Following the report, BTC hit an intraday high of $19,835.17, less than 24 hours after trading at a low of $18,642.11.
This rally has seen momentum change once again, with several indicators now leaning more towards bullish territory. The 14-day Relative Strength Index (RSI) has broken back above the 50.00 mark and is at 51.54 at the time of writing, which could see it reach a ceiling of 55.00.
If this point is reached, then we will likely see bitcoin not only above $20,000, but approaching $20,500.
Ethereum also advanced in today’s session, with the token moving back above $1,300, bumping into a key resistance point in the process. ETH peaked at $1,335.10 earlier in the day, bumping into a key resistance level, at the same time in the process.
This is the highest point at which the world’s second-largest crypto-currency has traded since the beginning of the week.
However, since hitting that high, prices have fallen slightly and the token is now trading at $1,328.51. As can be seen on the chart, this comes as the RSI has collided with a clean resistance point, which is the 46.50 mark.
For ethereum to continue to climb, the price strength will have to break through this current ceiling.