Bitcoin, Ethereum Technical Analysis: BTC Edges Closer to $22,000 Ahead of US Inflation Report

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Bitcoin rebounded in Tuesday’s session, as markets prepared for this afternoon’s U.S. inflation report. It is expected that the annual rate of inflation in the United States dropped to 6.2% in January, down 0.3% from the month prior. Ethereum also rallied, climbing back above $1,500.

Bitcoin

Bitcoin (BTC) rebounded from recent losses in today’s session, as prices moved closer to the $22,000 level.

BTC/USD hit an intraday high of $21,849.01 earlier in the day, which comes after falling to a low of $21,460.09 on Monday.

Today’s action saw bitcoin snap a two-day losing streak, and comes as prices rejected a full breakout of a floor at $21,500.

Looking at the chart, the 14-day relative strength index (RSI) also rejected a break of its own, with the index remaining above its support at 44.00.

As of writing, price strength is at a reading of 47.86, with a resistance of 50.00 nearby.

In order for BTC bulls to take price above the $22,000 mark, this point of resistance will need to be broken.

Ethereum

Etheruem (ETH) climbed back above $1,500 on Tuesday, as it also reentered a recent support point.

Following a low of $1,470.02 to start the week, ETH/USD rallied to a peak of $1,514.08 earlier in today’s session.

As a result of this move, the world’s second largest cryptocurrency is once again trading above its long-term floor at $1,505.

Despite this, overall market momentum remains bearish, with the 10-day (red) moving average (MA) extending its death cross with its 25-day (blue) counterpart.

What has somewhat helped to ease the current market sentiment is the floor of 44.00 on the RSI indicator.

Should the floor break, there is a strong possibility that ethereum will be heading for the $1,450 mark.

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Could cryptocurrencies rally after today’s inflation report? Leave your thoughts in the comments below.