Bitcoin surged to a fresh two-month high on Jan. 14, as crypto markets were significantly higher on Saturday. The world’s largest cryptocurrency jumped above $21,000, as prices rallied for a sixth straight day. Ethereum traded above $1,500 to start the weekend, also hitting its strongest point since November.
Bitcoin (BTC) rose for a sixth straight session to start the weekend, as prices moved above the $21,000 level.
BTC/USD climbed to a peak of $21,054.38 earlier in today’s session, which comes after prices were at a bottom of $18,793.66 on Friday.
This spike in price saw bitcoin add as much as 10% to its value in the last 24 hours, hitting its strongest point since November 5 in the process.
BTC/USD – Daily Chart
Looking at the chart, the rally came as the 14-day relative strength index (RSI) continued to surge. It is now tracking at 89.22.
Typically, a reading of 70.00 is seen as overbought, and with this print, which is its highest point in two years, we are deep in bear territory.
When price becomes overbought, many expect bearish sentiment to grow, as traders begin to short the market.
Ethereum (ETH) also hit a two-month high in today’s session, with price staying in the green for a seventh consecutive day.
Following a low of $1,404.82 on Friday, ETH/USD moved to an intraday high of $1,558.25 on Saturday.
As with bitcoin, this rally sent the world’s second largest cryptocurrency to its highest point since November 5.
ETH/USD – Daily Chart
Overall, ethereum is now trading over 23% higher in the last seven days.
The move comes as the 10-day (red) moving average extended a crossover of its 25-day (blue) counterpart.
Despite this bullish momentum to start the weekend, many still expect some reversals over the next few days.
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Could we see ethereum fall below $1,400 this weekend, with traders taking profits? 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 a startup founder.
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