Ethereum was once again volatile on Wednesday, as the coin’s price fell below $1,700 ahead of the latest US inflation report. However, following the report, which came in at 8.5% in July, the coin is back above this point. Bitcoin was trading lower as it hovered below $24,000.
Bitcoin (BTC) was once again trading below $24,000 in today’s session, as the token continued to react to increased levels of market turbulence.
The world’s largest cryptocurrency fell to a low of $22,771.52 on Wednesday, which comes less than a day after trading above $23,900.
BTC/USD fell to its lowest point in the last five days in today’s low, and this comes ahead of the release of the latest US inflation report.
Following the report, which showed inflation in the United States falling to 8.5% year-on-year in July, against the expected 8.7%, BTC rose higher.
At the time of writing, BTC/USD is trading at $23,593.37, which is almost $1,000 higher than the day’s low.
The move came as the Relative Strength Index (RSI) dropped from its bottom at 53.90, and is currently tracking at 56.10.
After the start of the day, Ethereum (ETH) was also bullish on the better-than-expected Consumer Price Index (CPI) report.
ETH/USD started the day trading with a low of $1,665.09. However, as we released the data, the price increased by over $100.
As of writing, Ethereum is trading at a one-day high of $1,761.56 and is rising as bulls re-enter the market after a recent consolidation.
Looking at the chart, ETH is now ready to test its current resistance at $1,785, and if broken, we could see the coin climb above $1,800 today.
Similar to Bitcoin, Ethereum has gained price strength after a false breakout of the 60 support level in the 14-day Relative Strength Index indicator.
The index is now moving towards a higher range of 65, and if it is reached ETH/USD is likely to rise to $1,800 or more.
Register your email to receive weekly price analysis updates delivered to your inbox:
Will we see now that inflation will start declining sharply in the coming months? Give your thoughts in the comment below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.