• Bitcoin surged to a fresh two-month high on Jan. 14, as crypto markets were significantly higher on Saturday.
• Ethereum traded above $1,500 to start the weekend, also hitting its strongest point since November.
• Both Bitcoin (BTC) and Ethereum (ETH) have added over 20% in value in the past seven days.
The crypto markets have seen a significant surge in prices on Saturday, as both Bitcoin (BTC) and Ethereum (ETH) hit two-month highs. Bitcoin surged to its highest point since November, climbing above the $21,000 mark and posting a 10% gain in the last 24 hours. Ethereum followed a similar trajectory, trading above $1,500 and recording a 23% increase in the last seven days.
The Bitcoin rally came as the 14-day relative strength index (RSI) continued to surge, reaching its highest point in two years. Typically, a reading of 70.00 is seen as overbought, and with this print, many traders are expecting bearish sentiment to grow and for traders to begin to short the market.
For Ethereum, the bullish momentum was driven by the 10-day (red) moving average extending a crossover of its 25-day (blue) counterpart. This bullish trend has been bolstered by Ethereum 2.0, the latest update to the Ethereum blockchain, which was released on December 1. The update is expected to bring a number of new features, including sharding and staking, which could improve the platform’s scalability and security.
The current rally in the crypto markets could be driven by a number of factors, including increasing institutional interest and the weak US dollar. The Biden administration is expected to launch a new round of stimulus measures, which could further weaken the greenback and lead to more demand for alternative assets like Bitcoin and Ethereum.
Overall, the current surge in crypto prices is a positive sign for the industry, and could be a sign of further gains in the coming weeks. However, traders should remain cautious, as a sharp correction could occur if the rally loses momentum.