Days after falling to a 6-month low, bitcoin rose for a second consecutive session, as prices slowly approached its key level of $40,000. Today’s gain in BTC comes as the global crypto market cap was 4.7% higher from yesterday’s session, as of writing.
The world’s largest cryptocurrency hit an intraday high of $38,415.90 on Wednesday, which is its highest level in the last six sessions.
Today’s move comes as the 14-day RSI on BTC/USD broke out of its recent resistance level of 30, which typically signifies prices being oversold, and is now tracking at 38.
Despite remaining relatively oversold, this short-term bullish momentum has led to the 10-day (red) EMA slowly curving out, with the potential for an upward cross with the 25-day (blue) EMA gradually increasing.
If this were to occur, history shows that there could be increased buying pressure, as prices would likely break above the $40,000 ceiling. Which is an area where previous bull runs have started.
However, as we approach this level, there looks to be some resistance ahead, with the RSI indicator showing that a ceiling of 41 could pour cold water on the current streak.
This, if the recent bullish pressure isn’t enough to overcome the upcoming hurdle.
ETH prices were trading close to 10% higher during the course of Wednesday’s session, hitting an intraday high of $2,648.49 in the process.
Similar to bitcoin, ETH/USD moved past recent lows in its 14-day RSI, and currently tracks slightly above the 34 level.
This gain in strength has led to prices hitting a 5-day high, now on the periphery of breaking into the 0.236 Fibonacci level.
As you can see from the chart below, this fib level, which is at $2,675.00, has birthed several bull runs in the past.