Bitcoin Surges Above $28,000
Bitcoin (BTC) started the month with a strong rally, surpassing the $28,000 level and signaling the beginning of “Uptober.” After hitting a low of $27,056.29 on Sunday, BTC/USD climbed to a peak of $28,488.74 in today’s session, reaching its highest point since August 17.
The surge in momentum can be attributed to a breakout at the 68.00 level on the 14-day relative strength index (RSI). Currently, the RSI stands at 69.44, just below the overbought threshold of 70.00. If the indicator surpasses this level, it could prompt bears to reenter the market.
Ethereum Holds Above $1,700
Ethereum (ETH) also experienced positive movement as it continued to trade above $1,700. The cryptocurrency reached an intraday high of $1,750.60 before starting the week and had previously dipped to a low of $1,670.08. This upward momentum has propelled Ethereum to its highest level since mid-August after breaking through a resistance point at $1,730.
An analysis of the chart reveals that there has been an upward crossover between the 10-day and 25-day moving averages, which is typically seen as a bullish signal. However, given Ethereum’s RSI nearing overbought territory, traders may exercise caution before increasing pressure.
Hot Take: Crypto Market Shows Strength as Bitcoin and Ethereum Surge
The crypto market is off to a strong start in October with Bitcoin and Ethereum both experiencing significant surges. Bitcoin surpassed the $28,000 mark while Ethereum remained above $1,700.
The rally in Bitcoin can be attributed to a breakout on the RSI, signaling strong momentum. However, if the RSI continues to rise and enters overbought territory, it may indicate a potential reversal.
Ethereum’s upward movement was supported by a breakout above a resistance level and an upward crossover between moving averages. Traders should monitor Ethereum’s RSI for signs of overbought conditions.
Overall, the crypto market is showing bullish sentiment as we enter “Uptober,” but caution is advised as overbought conditions may lead to a market correction.
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