Cryptos Consolidate Gains as U.S. Economic Data Looms
• Cryptocurrencies such as Bitcoin and Ethereum are continuing to consolidate recent gains as markets prepare for upcoming US economic data.
• Bitcoin is trading above $23,000, while Ethereum is nearing a move below $1,600.
• Technical indicators such as the RSI suggest that shifts in momentum may be on the horizon.
Cryptocurrencies have continued to consolidate their recent gains on Jan. 24, as markets prepare for a big week of U.S. economic data. On Thursday, the U.S. will release its gross domestic product (GDP) figures for Q4 2022, followed by consumer sentiment data the day after.
Bitcoin (BTC) is trading at $22,913.54, consolidating for a third straight day but still remaining above $23,000 for most of today’s session. BTC hit a high of $23,134.01 earlier, a level not seen since October 2020. Despite this, the 14-day relative strength index (RSI) has neared a ceiling of 86.00, with a floor at 80.00 another possible destination for traders. The 10-day (red) moving average has also begun to show signs of peaking, which could lead to a sudden shift in momentum.
Ethereum (ETH) has seen somewhat slower momentum in today’s session, with price approaching its floor at $1,600. Following a high of $1,658.02 to start the week, ETH/USD dropped to a bottom of $1,609.16 earlier in the day. Several dojis (candlesticks signaling reversal) have appeared on the chart, suggesting sentiment in the world’s second largest cryptocurrency has already shifted. The RSI is currently hovering slightly above a floor at 74.00, which is a current indicator of the market’s direction.
Overall, it looks like the markets are preparing for a big week of economic data from the U.S., and traders will be watching closely to see how this impacts the price of cryptocurrencies. With technical indicators suggesting shifts in momentum may be on the horizon, it will be interesting to see how the markets react in the coming days.